RETIREMENT
Retirement Villages Still A Safe Bet
Demand for propery soars
R
JESSICA KOLVER
Jessica Kolver has been working in the property industry for the past five years , managing advertising , marketing and sales . Before joining Engel & Völkers , she worked at Dunn Properties , as Sales Manager at Liberte Properties and also did a stint as fashion buyer at Truworths . She holds a B . Com . degree from the University of Stellenbosch .
esidential units in retirement villages have proven to be some of the best property investments , with unsurpassed high returns being the order of the day .
La Récolte Retirement Village , situated in Stellenberg in the Northern Suburbs of Cape Town , is an exclusive development offering residents the ideal place to call home . Advantages include lock-up-andgo lifestyle , state-of-the-art security and facilities , as well as luxury finishes .
We ’ ve seen an upward trend in the demand for retirement properties . This sector is driven by ground rules , supply and demand , and at the moment demand far outweighs supply .< end breakaway box >
Most of the retirees today form part of the baby boomers , born between 1946 and 1954 , making them between the ages of 63 and 71 . Since 2011 , baby boomers have entered the retirement phase and will continue to do so for the next 10 years . According to studies , most of the baby boomers are well educated and had successful careers . However , many are not financially prepared for retirement as they have high levels of debt and are the first generation in history to enjoy the widespread use of credit .
This has changed the way we see retirement and its products and services significantly .
This group also received improved medical care , medicines and lead healthier lifestyles than their predecessors . This leads to a demand for retirement villages and less availability in existing traditional old age homes . Living longer is a challenge for people who retire on a fixed budget , having to pay for medical care out of their own pockets , due to the rapidly increasing medical costs and services putting pressure on medical schemes . These costs could derail their financial plans during retirement .
We ’ ve also seen much interest from children of baby boomers . They were born between 1966 and 1976 . Generation X ( Gen Xers ), as they are known , often support their parents in some way and also see buying into a retirement village as an investment in their own future retirement .
Prime investment
Those in the position to do so , would be smart to invest in retirement villages . It ’ s been clear , for several years now , that this market doesn ’ t follow the residential market . There is oftentimes a waiting list of people who want to purchase homes in the established villages , making it an ideal investment .
Although one can only live in a retirement village from the age of 50 , those able to should consider investing much sooner due to the massive long-term benefits . Not only does it allow you to plan ahead for old age , you also invest at today ’ s prices , ensuring that your capital investment increases in value . The developments usually include a selection of various sized apartments , townhouses or houses . A wide selection of residences caters for the varying ages and needs of retired individuals . Many retirees buy a home where they can still enjoy their independence , with the option of moving into an assisted living suite or frail care facility within the same development . It ’ s all taken care of
When you stay in a retirement village , you become a member of a small community with like-minded residents that are at a similar stage in their lives . Many retirement villages also offer regular activities and trips . Chances are great that you ’ ll make friends , so you ’ ll never be short of company . Another advantage is security . Most retirement villages come with the latest safety and security measures such as 24-hour security with access controlled gates , electrical fencing , closed circuit television ( CCTV ), alarm systems , and more . It offers peace of mind whether you ’ re at home or away . As with all properties , position is key . Apart from security , frail care facilities and a lock-up-and-go lifestyle , retirees want to be close to shopping centres , recreational facilities , hospitals and clinics , and have easy access to highways . Retirement homes are designed around your needs , allowing you to live your life to the full without worrying about anything . You have DStv connectivity , Fibre Internet , optional homecare nursing , landscaped gardens and affordable , stable levies . You can go away for long periods to visit your kids or go on holiday . It ’ s completely stress-free and the perfect option for anybody 50 years and over . It offers every comfort and convenience , whilst being close to city amenities . Every retirement village has its own legal structures which important implications . It ’ s therefore important that buyers understand what they are buying into before signing any contracts . They should also ensure that the Retired Persons Act is adhered to by the developer and ensure they are aware of the levies , and other costs involved .
Once all that is taken care of , investors can sit back and be confident that they have bought into an asset class which will offer great financial returns in years to come ,”
SOURCES larecolte . co . za , Engel & Völkers
28 NOVEMBER 2017 SA Real Estate Investor Magazine