Independent Elders Break Free

PRESS RELEASE: For immediate release
Professionals Real Estate Group
Auckland/Northland

Independent Elders Break Free

Older people are bucking the tradition of seeing out their retirement years in the family home and are seeking security and an active, independent lifestyle in gated communities, modern apartments or retirement village housing.

The Professionals Regional Manager for the Auckland/Northland Region Gary Murphy says this trend has strengthened over the past five years, and is having several impacts on the property market which are likely to continue as the bulk of New Zealand's population moves into the older age brackets.

Not so long ago, this movement of older people into smaller housing would have meant a steady stream of family-friendly homes for younger people flowing into the property market. But demand for affordable housing in the Auckland/Northland region, as in other parts of the country, is still far outweighing the supply.

Today, young couples and small families are not only competing with each other for traditional suburban homes on sections, they are competing with their parents' generation for roomy, affordable, well-designed apartments.

Paul Lochore, Managing Director of Lochores Real Estate based in Birkenhead and Glenfield, and a member of the Professionals Group, observes that in the lower North Shore area, people are planning for their retirement earlier sometimes making two or three moves after reaching their late 50s or early 60s.

"We're starting to see the first of the baby boomers come through people of my generation who were brought up to marry young, have children soon after, pay off the mortgage before retirement age, and if you could afford it buy an investment property as your retirement fund.

"These people want independence and security. They don't want yard space, they want to be able to enjoy themselves to travel, see their grandkids, play golf older people are staying healthy and active longer these days, often well into their 70s and 80s."

Paul Lochore says that in his area, older people are moving from their family homes and into roomy one-level apartments in Northcote and Takapuna. They are seeking comfort, quality and size not small, two-bedroom brick and tile units of the 1980s and 90s and are willing to spend between $400,000 and $800,000.

Those older people attracted to the shared facilities and activities of a retirement village may not find suitable retirement village housing in their own neighbourhood.

There are an estimated 400 retirement villages throughout New Zealand, of which about 50* are based in Auckland and Northland. Relatively few retirement villages have come on stream in the years leading up to the 2003 Retirement Villages Act, which offers more consumer protection for residents, and prospective buyers can't always find what they like or can afford.

Gary Murphy, who employs a retirement specialist agent at the Pukekohe office of his Property Link Group, a member of the Professionals Group, says security and companionship are two big drivers for older people considering moving to a village.

"Years ago, elderly people stayed in their own homes with the support of their sons and daughters. Today, families are spread far and wide and older people see tiered retirement villages as a place where, with help with housework and meals, they can remain independent for many years."

But as most retirement village units cost upwards of $320,000, those elderly in lower-priced Auckland areas such as Tuakau with less than $300,000 to spend from the sale of their house may need to rule out that option.

Paul Lochore and Gary Murphy note that many elderly face accommodation hardship into their senior years. "The ones who own property can use their assets to supplement their superannuation income, but those who don't own their own home may find themselves with less desirable circumstances," says Paul.

* Members of the Retirement Villages Association New Zealand

ENDS

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