Remember the 60s and 70s?
Commune/communal living has morphed to
Seniors property or home sharing.
A similar model, but different!
A 60-plus“ landlord” shares his thoughts.
Markets have changed so much from the times when those of us, who are now pensioners, were in our young adulthood. This includes the property market. Prices have soared from what might have been somewhat affordable in bygone days – to now what are in reality priced at stratospheric levels.
Many people have as a result been caught unawares by this development and face the reality of needing to find longer term accommodation while in their senior years. This can be a challenge for some people, affordability wise. And so too are many property owners, who have found themselves experiencing their own challenges. The price of everything has have soared. Rates and taxes are spiralling upwards, maintenance costs, basic services such as electricity, water, refuge removal, sewage disposal, connection fees, the cost of labour and domestic help, etc. The list seems to go on and on. Add to this, the fact that many seniors find themselves living in oversized homes on properties that they are now finding quite a handful to keep going. In addition to all of this, the so-called “empty nest syndrome” applies to many South African parents, whose children have migrated to greener pastures in faraway lands.
Thus, while it might seem that there is a deficit of accommodation on the demand side of the equation for many seniors – there is currently a surfeit of unused dwelling space across our land. People with large properties or homes which are only occupied by one or two people at most.
This then brings the article to the concept of seniors’ property, or seniors’ home sharing. A relatively new concept in our South African vocabulary.
Seniors’ property or home sharing comes in various guises or models. It provides a possible solution to the apparent imbalance that exists for some people in terms of supply and demand.
Property or home sharing is a viable way of addressing this and providing an option for many fellow citizens.
What and how does all of this work? One needs to remember the era when many young people shared accommodation together, perhaps in college or university days. Commonly known then as ”a commune, or communal living’’. Seniors’ property or home sharing is a similar model. “Same, same but different!”
This model that we are discussing here can come in various guises, shapes and forms and can cover quite a spectrum of options. The ones that we are most familiar with are when unrelated retirees share a home together. They all live under the same roof, share the same facilities such as lounge areas, kitchens, dining areas etc – but have their own bedrooms and personal privacy. At the other end of the spectrum is where those sharing may each have their “own quarters’’ so to speak. Some properties allow for this when they are designed in such a way that there may be different dwelling spaces on the same property, each with their own private and personal entrances and facilities such as kitchen space etc. The latter is the one model that we are most familiar with.
Many South African homes are quite large and have an abundance of unused space. Some have configurations which allow, with a bit of adaptation, for them to make ideal senior home sharing options. We have successfully done this for a while and have been able to assist various seniors in solving their accommodation dilemmas via sharing our property with them. One senior is well into her 80’s and another approaching her 90’s. It has been a rewarding practice for all concerned.
Here are a few thoughts when considering the concept of property and home sharing as a life option.
- When selecting candidates with which to share one’s property or home, it is very important to go through all the usual steps of accreditation and due diligence that one might with a regular rental tenant.
- Naturally, if one is about to share one’s home with someone who was formerly a stranger, one needs to be selective and aim to ensure that they will be compatible with one’s own personality and lifestyle. This step may take a bit of effort and work.
When discussing this subject from the homeowner’s perspective, it is useful to realise that by sharing a home with other seniors, this can lead to a useful source of secondary or passive income. This may well assist the owner in being able to hold onto a property, which may have needed to be otherwise sold, due to longer-term affordability issues. Most income is potentially taxable and such subjects need best to be discussed with a tax advisor. In addition, there are legal considerations that also need to be surfaced and talked about with one’s lawyer.
Going forward, seniors’ property or home sharing represents an area of opportunity for many, particularly with regards to larger homes that have an excess of space for the current owner’s needs and use. Additionally, this accommodation option can provide a viable option for seniors who don’t have the luxury of being able to choose where they wish to live. Facing reality, many seniors don’t have the luxury of multiple choices and moving forward, sharing may well prove to be a solution for many of our citizens.
Article by Gerardus Benedictus PhD
