What sort of accommodation do seniors want?

Seniors Housing Online, Australia’s leading retirement living website welcomes the Australian Housing and Urban Research Institute (AHURI) research findings that many seniors want larger homes during their retirement than has previously been assumed.

The AHURI report on “How well do older Australians utilize their homes?” confirms what our website surveys are already telling us – 85% of seniors searching for retirement property want two or more bedrooms. We have more than 20,000 seniors a month searching the website for retirement accommodation to buy or rent, and the reality is that while people may want to downsize the mortgage or access their equity in the family home, they don’t actually want to downsize their lifestyle in retirement.

They want enough space and facilities to be able to enjoy their retirement, and when they spend more time at home they need to be able to accommodate home based activities and visiting family and friends comfortably.

The benefits of downsizing to age specific housing include the security of knowing support services are available in the future should they be needed, as well as providing a resort-style environment, a sense of community and security and freedom from household chores and property maintenance.

Our surveys show seniors are overwhelmingly looking for independent living, with 75% saying this is essential and 21% saying it is desirable. 80% want a village setting; 67% a clubhouse or recreation centre; 59% a swimming pool and 49% a gym. 88% still want garages and parking spaces; and 58% want pet-friendly accommodation.

People are even prepared to move away from family and friends to achieve a better lifestyle in retirement at a price point they can afford, with 43% saying remaining in the same area doesn’t matter; 35% saying it is desirable and only 22% considering it essential.

These are the factors influencing housing choices which need to be recognized by government and private developers to cater for the babyboomer generation as they retire from full time work.

For more see http://www.seniorshousingonline.com.au/

Reverse mortgages - a new Australian report.

Reverse mortgages and home reversion schemes are growing in popularity in Australia and overseas as a means of funding long term care, home modification, home maintenance and to supplement income. While they can be a handy source of extra cash for retirees, without having to sell the family home, they can also be complicated and can expose vulnerable consumers to serious financial risks as well as affecting eligibility for the age pension and tax obligations.

The Australian Housing and Urban Research Institute (AHURI) has conducted a comprehensive study of the Australian industry and the influence these products have on retirement decisions and planning. This report reviews the range of products currently available, examines the experience of older people, and the impact of the Global Financial Crisis. It also highlights policy implications for government in the provision of housing, aged care services and social security benefits, as well as identifying potential regulatory improvements.

Major national reform of consumer credit regulation is currently underway, which is expected to address reverse mortgage products. The AHURI research concludes that if these products are to be used as part of the government’s “ageing in place” policies, to supplement the housing and care support needs of older homeowners, greater guidance and support is needed to protect the most frail and vulnerable consumers.

It recommends that the reverse mortgage market could be improved through increased regulation, better advice to consumers, reduction in break fees and better protection of vulnerable consumers through continued monitoring. It questions whether reverse mortgages are closer to being a financial product rather than a credit product for regulatory purposes, and the role of the Australian Securities and Investments Commission (ASIC).

The report also suggests that ASIC could undertake further analysis based on the work of the National Information Centre on Retirement Investments (NICRI) reverse mortgage helpline.

To view the full report click here: http://www.ahuri.edu.au/publications/projects/p70512

To visit the NICRI website click here: http://www.nicri.org.au/

To visit the Seniors Housing Online website click here: http://www.seniorshousingonline.com.au/