How and where people want to live in old age is clear: 69 percent of respondents aged 40 and over would prefer to stay in their own house or apartment later on. This is shown by a recent Gallup survey commissioned by Raiffeisen Immobilien Österreich. Innovative buying and selling models can help to adapt one’s own four walls to a new phase of life and to make sensible use of tied assets. [1]
Owning one’s own four walls is a clear favourite in old age
In addition to the 69 percent who would like to live in their own house or apartment in old age, another 15 percent prefer an independent, assisted living unit. Living with children, grandchildren or other relatives, on the other hand, is the preferred solution for only two percent; more than a quarter expressly exclude this form of housing.
A retirement home is also the first choice for only two percent, while it is out of the question for 31 percent. On the other hand, there is openness to new concepts: Five percent favor a multi-generational residential building, while only seven percent reject this model in principle.
“The results show very clearly how important independence and the familiar home are, especially in later phases of life. The aim is not to persuade owners to come up with a specific solution, but to show them all the options in good time. Those who plan early can combine quality of living, security and financial freedom much better,” explain the two spokespersons of Raiffeisen Immobilien Österreich, Peter Weinberger and Peter Mayr.
Inherit or improve your own quality of life?
Many owners want to pass on their house or apartment to the next generation later. As a result, necessary changes are sometimes postponed for a long time. At the same time, the property ties up a large part of the assets, while there is a lack of funds for age-appropriate renovations, support in everyday life or a more suitable home.
The question is therefore not necessarily “sell or bequeath?”. What is needed is an individual solution that combines housing security, financial flexibility and the interests of the family. Potential heirs should be involved in these considerations at an early stage.
Flexible models for different life situations
One option is to sell a property that has become too large and buy a smaller, barrier-free condominium. This frees up assets without renouncing ownership. If the new living space is to be purchased before the sale, interim financing can also be examined.
Another variant is the sale with a right of residence secured in the land register. The previous owners can stay in the property and at the same time have funds for pensions, renovations, support for children or personal wishes.
A sale on life annuity or partial sale may also be an option. Since the costs, rights, obligations and consequences for a later inheritance differ significantly, a legal, tax and financial examination is essential.
“A property is not only a home, but often also the largest asset of a family. These assets can open up new scope for action in old age. Which solution is suitable depends on the property, the financial situation and personal plans. There are no blanket solutions,” Weinberger emphasizes.
Early planning creates more opportunities
Those who deal with living in old age in good time can make decisions without time pressure. For a new home, accessibility, lifts, local amenities, public transport connections and short distances to medical facilities are usually gaining in importance.
Personal advice connects the individual building blocks
The real estate experts at Raiffeisen Immobilien provide support in valuation and
sale as well as in the search for a new home. Together with Raiffeisen
bank advisors as well as legal and tax experts, the individual building blocks
can be coordinated.
“Modern living in old age means being able to make your own decisions. Professional
advice creates a realistic overview of the property value, housing models and
financial leeway. This creates a solution that fits the life situation and
long-term wishes,” says Mayr.
