Real Estate Investor Magazine South Africa September 2016 | Page 45

4Target Market: When you invest in a retirement home, you have a very specific target market. Since most retirement communities require residents to be 55 or older, when looking for buyers or renters for your property, you know who you are targeting and you can develop a marketing plan which will appeal to this demographic. 5Amenities: There are numerous amenities available in retirement communities. From exercise classes, educational courses and recreational activities, there is always something to do in the community. 6 Quiet Community: Many retirement communities are gated and are not accessible to street traffic. In addition, the average home size is only one or two people, so the amount of noise in the community is at a minimum. 7Less Wear and Tear: There will only be one or two people living in the home, and no children, so there will be less wear and tear on the property. 3 Cons of Investing in Retirement Homes There are also negatives to purchasing a retirement home as a property investment. You are limiting yourself to the over 55 segment of the population, which takes away anyone under that age as a potential renter or buyer. Here are three things to be aware of. 1Monthly Fees: While there are some communities that don’t require it, in most retirement communities, you will have to pay a monthly fee for the retirement home. What the fee covers will vary by community, but it can include utilities, yard maintenance and housekeeping, for example. As an owner, you will have to pay this fee regardless of whether you are able to find a renter for your property. 2Niche Market: Buying investment property in a retirement community limits your potential buyer or rental pool. You usually have to be at least 55 years of age to reside in the home, so this type of investment immediately cuts out a large portion of the population. 3Limited Investment Properties: Retirement communities are not found in every neighborhood. As spoken about above, there are specific areas where these homes are commonly located. In addition, inside the actual community, there are only certain types of investment properties available. These are usually a single family home or a condominium. RESOURCES fin24 Developing Future African Cities 2 – 3 November 2016 CTICC, Cape Town, South Africa LEARN WHAT LAND WILL BECOME AVAILABLE AND ESTABLISH KEY RELATIONSHIPS TO LAUNCH YOUR PROJECT IN AFRICA Don’t miss out on... • Development and investment opportunities • Engaging with City Planners and City Directors to understand development models and master plans. • Viewing public and private planned real estate projects • Facilitated 1-2-1 match making meetings with private and government representatives To discuss your company’s participation or to secure your seat, please contact Stephan Herman on [phone] or [email protected] Invited Host City: Promotional Agency: Organising Partner: African Event Specialists: www.african-real-estate-summit.com Premier Media Partner: