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If you're retiring and looking to scale down on home maintenance
so you'll have more time for travel, hobbies or just relaxing, you've
probably thought about selling your family home.
But then what? Should you rent or buy again? And if you buy, what
type of home should it be?
The advantages of renting - especially if you choose an apartment
or sectional title townhouse - are less responsibility for home
maintenance, generally good security, more freedom to lock-up-and-go,
and avoidance of the extra costs associated with home buying and
ownership, such as transfer duty and bond registration costs, insurance
and rates and taxes.
Renting for a while is probably also a good idea if you are "between
homes", that is, not sure where you want to settle in retirement.
However, there are also disadvantages - the big one being the uncertainty
about how much rentals will rise in future, and how you will continue
to make these monthly payments, especially if you're on a fixed
income that is being steadily eroded by inflation.
If you have children, you may also worry that renting is just eating
up their inheritance.
So a better option for many people is to buy a sectional title
unit in a secure complex, especially if you can use the proceeds
of your home sale and buy the unit outright.
In such complexes, there is a monthly levy to pay, but it gives
you much the same freedom from maintenance chores as rent - and
you have an appreciating asset to show for your trouble.
Looking ahead, however, you may wish to combine your current residence
with planning for possible health-care needs in the future, in which
case you should be looking to buy a home in a retirement village
with its own assisted-living and frailcare facilities.
Here, too, you will be paying a monthly levy but the trade-off
will not only be in home and garden maintenance but in peace of
mind about what will happen to you if you become ill or too frail
to manage your own home.
Well run retirement complexes will usually also have a levy stabilisation
fund to help keep a lid on future increases - and once again, you
will have an asset to leave to your heirs.
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| Straighten up and price right |
At this stage of the property market, it's vital for sellers to
get their asking prices right - and to use the right guidelines
for doing so.
One thing they should not do is base their estimate of what their
home is worth on the advertised prices of other, similar-sounding
properties.
They should be aware that many sellers get a kick out of seeing
their home advertised at a high price, and don't like to lose face
by lowering that price even when buyers have made it clear that
they don't like the estimate and the property has become "stuck"
in the market.
Other unreliable indicators of asking price are the amount for
which the property is insured, the municipal valuation and - worst
of all - the amount the seller needs to raise to pay for a new home.
Sellers who want a quick, clean transactions should rather ask
their agent to give them a realistic evaluation of the property,
based on actual recent sales of similar properties in the area.
These figures are in any case what bank valuators are likely to
use when considering home loan applications by any prospective buyers.
What is more, buyers are increasingly well-informed and highly unlikely
to offer more than a property is worth, regardless of any advert.
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Going "green" does not necessarily mean
growing all your own food organically or using only solar power.
There are plenty of inexpensive ways for ordinary families living
in ordinary homes to help take care of the planet - and their own
health.
Some simple ideas include the following:
- Save water. Put aerators on all household taps and you'll cut
your annual water consumption by half. Don't wash the car or clean
the driveway with a hose. Turn off the tap while you brush your
teeth.
- Clean green. Stop using cleaning products with ingredients
that are toxic to the environment and make your own from plain
soap, baking soda (sodium bicarbonate), vinegar, washing soda
(sodium carbonate), lemon juice and borax.
- Recycle as much as you can. Recycling just one glass bottle
saves enough electricity to light a 100W bulb for four hours.
And re-using plastic bags cuts down on global warming through
the processing and burning of petroleum. Better still, use cloth
bags to carry your groceries.
- Use less paper and save trees. Look out for paper products
with a high percentage of recycled pulp. Remove your name from
junk mail address lists.
- Garden green. Use compost instead of synthetic fertilizers.
Use indigenous plants as much as possible. Stop using chemical
pesticides and switch to organic or physical pest control methods.
Use a push mower instead of an electric or petrol one (and save
on gym fees!)
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This is the time of year when many people start
making vacation plans - and looking for a holiday home to rent.
But unless you want to risk disappointment, you
really do need to be careful what you sign up for. For example,
if you want a waterfront property, you should ask the landlord or
agent to be specific about the distance to the beach or riverbank.
Similarly, if the ad says "close to shops", ask exactly
how far, or you may face a long hike every time you need a litre
of milk.
Next you should beware of hidden costs, such as
fees for additional guests, pets, servicing and even TV hire or
Web access. To prevent nasty surprises, get the details - plus your
move-in and move-out dates and payment schedule - in writing, even
if it's only on email.
Third, you should be aware that you may not get
a refund of any payments made upfront if your plans change - especially
if your booking falls into high season.
And finally, beware the housemates from hell. It
may sound like fun to share costs with a group of friends or another
family, but there's nothing to test a friendship like a rainy day
at the coast with everyone indoors and getting on each other's nerves.
It may be a better idea to rent separate units and meet up on the
beach.
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