The property market has changed so much
since most of us pensioners were young adults.
However, new trends are rearing their heads
– new forms of accommodation options are becoming
available internationally, as well as here in South Africa.
Prices of all forms of housing options have soared from what might have been somewhat affordable in bygone days – to now what are in reality seem to be priced at stratospheric levels. Having said that, new forms of accommodation options have become available internationally, including here in South Africa.
CLICK HERE TO READ PART ONE: Seniors property sharing. To do or not to do?
The Seniors’ Property Sharing concept has entered the accommodation market.
Property or home sharing is commonly defined as two or more people living in accommodation together. Usually, each person would have their own sleeping accommodation or bedroom while at the same time typically sharing certain communal areas such as kitchens, living rooms and sometimes even bathrooms. In many cases, this would also extend to gardens and entertainment areas such as braai facilities. This can be very advantageous to everyone involved.
Of course, the entire concept needs to be viewed on a case-by-case basis. Some properties may enjoy the luxury of having multiple separate dwellings of annexes. This situation really lends itself to the practice of home sharing. And there are multiple variations of the theme.
When looking at home sharing from a property owners’ perspective, one really needs to adopt a strategic approach. This calls for a vision backed up by an action plan. There are so many options at hand.
This series of articles around seniors’ home or property sharing is discussing the multiple variables associated with the topic. There are so many facets to consider. At the same time there are multiple opportunities for both homeowners and those seniors in need of accommodation. We are also going to focus on the opportunities that are associated with home sharing for one and all …
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 brings us to the concept of seniors’ property, or seniors’ home sharing. A relatively new concept in our SA 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 the senior accommodation issue and provides 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 and university days. It was commonly known then as ”a commune, or communal living’’. Today, the Seniors’ property or home sharing trend 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, we have seniors sharing accommodation, but they have their “own quarters’’ so to speak. Some properties allow for this if 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 the author of this article is 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 while 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 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 anywhere 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
