These homes can provide isolated and lonely elderly people with the
opportunity to socialise with other residents, forge new friendships, and
receive care if they need it (even if it is just help getting ready in the Make it happen
morning). These developments usually include activities like fine dining, One Touch Property connects South African
wine tasting and outings with other residents to explore the local area. investors with trusted developers within
There are also a range of amenities on site for people who prefer to stay the UK retirement sector. Retirement homes
in, or who have mobility problems. These amenities include hair and provide stable returns that are underpinned
beauty salons, spas, private cinemas and rest areas. by the aging population in areas where
These retirement developments are strategically located in areas where
there is already a significant population of elderly people, so they would
not have to move too far from home, or transport themselves to an
unfamiliar environment.
Is it just a solution, or is it an opportunity, too?
Retirement communities are a relatively recent phenomenon in the
UK. Recognising the demand, interest in the sector has swelled over the
years. Since the UK voted for Brexit, Chinese insurers and Singaporean
wealth funds are just a few of the investors trying to take advantage of
the weak pound and looking for opportunities within the UK retirement
market. Overall, Knight Frank has estimated that £20 billion of overseas
equity is set for investment in the sector, as people are drawn to the
stable returns.
The returns are buoyed by Britain’s ageing population. As the baby
boomers enter retirement, there is a high demand for this sort of
accommodation. It is estimated that, by 2039, one in 12 people in the UK
will be over the age of 80, and in areas in the southwest of England, those
aged 65 or over could make up a third of the population.
This generation is generally relatively wealthy in terms of assets. Many
own their own homes, and have seen the value of those homes go up
significantly over the years. In 2016, 77% of people aged 65 or over owned
their own home. With the phenomenal growth in house prices and the
change in inheritance tax regulations, many of them want to downsize
to release equity. According to the Equity Release Council, the number
of homeowners using equity release has doubled in
five years and freed up £870 million of housing
wealth in the first quarter of 2018. The
increased prevalence of those wanting to
release equity and downsize, coupled
with the ability to afford retirement
resort rental fees provides good
demand for retirement property.
there are high numbers of elderly people,
meaning that there will be excellent levels
of demand. These investment opportunities
are ideal for South African investors because
the retirement homes are operated by an
experienced management company, meaning
that investors do not have to oversee the day-
to-day running of the property.
Investors can buy a luxury suite in a
retirement home such as Lindors from R1.25
million and receive a 10% return per annum
throughout the 10-year lease period. They
will have the legal title deeds. If the investor’s
circumstances change, and they urgently need
to exit the investment, they can sell at any
time. There are also several buy-back options
from year five onwards, providing another
opportunity to exit with increasing amounts
of capital uplift over time. For instance, the
developer will buy the unit back in year five
for 110%. Incremental exits are available all the
way through to year 10 at 125%.
This is an excellent opportunity for South
Africans to help combat the loneliness
epidemic in the UK, as well as safeguard
their savings in a politically stable country
while receiving secure returns that are paid
monthly.
For South Africans interested in luxury
retirement investments in the UK, One Touch
Property’s investment consultants will be in
various cities in South Africa from 17 to 27
July to meet with potential investors. There
are limited places, so book your spot today.
Get in touch with us using the contact details
below to reserve your space.
Tel: 010 300 1200 (JHB)
[email protected]
www.onetouchinvestment.co.uk
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