A retirement lifestyle or home maintenance blues – what’s to choose?
“The fellow that owns his own home is always just coming out of a hardware store.” – Kin Hubbard, American political cartoonist (1920s)
Every home owner knows that the cost of maintaining property never ends. Even if you’re no longer burdened by mortgage repayments, the ongoing costs of keeping your property in a liveable condition go on...and on. If you carry out a search on the internet on what recommended budget is required for keeping a home in good repair, the range is anywhere from 1.5% to 4% of the value of your property every year. That means, if your property is worth $500,000, at least $7,500 each year should be kept aside for regular maintenance and associated costs.
The Australian Bureau of Statistics (ABS), 16th SERIES CPI, AVERAGE WEEKLY EXPENDITURE AND WEIGHTS, JUNE QUARTER 2011, WEIGHTED AVERAGE OF EIGHT CAPITAL CITIES (a) – indicates that the total average weekly expenditure on all home maintenance, cleaning and related services and products is a total of almost $165 per week**, or $8, 580 per year.
If you’re considering moving into a retirement village, the co-ordination of, the doing of, and the payment of ongoing service and maintenance costs of the exterior of your retirement unit or villa and common areas - including enjoyment of the use of conveniently located shared facilities such as a swimming pool, bowling green or transport to your local shopping centre - are covered by regularly paid fees. Better still, retirement village operators and village managers make sure that your property and shared spaces are kept in great repair. They also have the advantage of being able to negotiate better prices with suppliers and service providers given that they are purchasing in bulk.
If you’re looking into your retirement living options, take some time to carefully consider and calculate all the costs associated with maintaining your property for both the short and longer term. This is valuable information to keep in mind when looking at retirement accommodation and the financial considerations.
What could a 5 year home maintenance budget look like?
Everyone’s circumstances differ. However let’s take a look at what a 5 year budget for maintaining an average residential property could look like. Read more..
What does a regularly paid retirement village service and maintenance levy cover?
On top of the cost of keeping your home in good repair, is the time and frustration of co-ordinating tradespeople, quotes and payment of invoices. When you move into a retirement village, you will continue to cover the costs associated with keeping your living environs in top condition but the pain of coordinating maintenance and planning ahead is looked after for you. Read more...
A garage sale may be in order
Invest some time in doing an honest, rooftop to foundation appraisal of your maintenance costs right now and in the long term. Don’t forget to also add in costs associated with participating in social and recreational activities that you enjoy now, or would like to enjoy in the future. Armed with this knowledge, book in a visit to a retirement village and compare the overall costs. You may be surprised to learn that you can not only sell up your lawn mower and hedge trimmer and commit more time to a sport or hobby, but you may end up saving money as well!
**includes the following ABS categories – New dwelling purchase by owners/occupiers (includes building and major improvements); maintenance and repair of the dwelling; tools and equipment for house and garden; cleaning and maintenance products; other household services (including domestic services such as gardening and cleaning).