Estate Living Magazine Investment - Issue 34 October 2018 - Page 24

Young at heart , or just young and restless for a good financial opportunity , it turns out it ’ s never too early to add retirement properties to your investment portfolio .
Property and Investment / Retirement Living

Investing in retirement property

Young at heart , or just young and restless for a good financial opportunity , it turns out it ’ s never too early to add retirement properties to your investment portfolio .

Shoreline Sibaya
Sixty may be the new 40 , according to researchers who say people are hitting ‘ middle age ’ later , but investors in the sectional title retirement property market looking for solid returns are even younger – with some in their 30s .
Alan Beesley , director of Carmel Properties , developers of Shoreline Sibaya , an exclusive retirement living complex on the North Coast of KZN , is seeing it first-hand . ‘ About 30 % to 40 % of our buyers are securing a stake in Shoreline Sibaya purely as an investment at a young age , whether it ’ s to take occupation themselves at their retirement age at today ’ s prices , or purely as a meaningful financial investment with an eye to significant capital growth .’
A sound investment opportunity is always appealing to those with financial savvy , and the growing retirement property industry , particularly in KwaZulu-Natal , is currently the fastest growing residential investment segment in the country , according to Natalie Bradfield , co-owner of Piccadilly Properties , agents for Shoreline Sibaya . ‘ Due to the massive demand for top quality retirement accommodation in South Africa , it is typical for this type of property to see an additional 2 % to 3 % capital appreciation per year . The trend is now , for young professionals who are looking for investments , to purchase within a retirement lifestyle estate with the intention of securing not only a long-term investment , but also securing the ideal lifestyle for their parents to enjoy , as well as being assured that all of their health needs are taken care of ,’ adds Bradfield .
Seemingly overnight , the retirement market has become toocool-for-school while old-age homes are just plain old-school . ‘ The latest trend is seeing retirees moving away from traditional retirement homes and opting for flexible , active living within a residential community that includes benefits like leisure facilities and healthcare ,’ says Sandra Gordon , Pam Golding Properties senior research analyst .
And the market is growing exponentially . Couple this with everincreasing longevity and the burgeoning demand for retirement options due to an ongoing shortage of suitable , affordably priced retirement accommodation , and it becomes clear why an investment in this sector is something akin to a sure thing . As Gordon says , ‘ With many retirees not in a position to purchase a home , there is a thriving rental market in the sector .’
Chairperson of the Rawson Group , Bill Rawson , agrees that these properties make a ‘ great ’ retirement investment . ‘ While it may take a few years for a buy-to-let property to become profitable , between bank financing and rental returns it ’ s entirely possible to fund your investment predominantly with someone else ’ s cash .’
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