cannot afford and so are forced to rent Residential
properties therefore remain an excellent long-term
investment and it comes as no surprise that the
demand for it has continued to be good despite the
rise in interest rates
Retirement Villages
Retirement Villages have become increasingly
popular as they specifically cater for the needs of
retirees. They offer:
•
Physical safety in terms of excellent security and
the comfort of living in close proximity to others
• Medical care is on hand at all times
• The knowledge that they can live there in
comfort for the rest of their lives without fear of
not being able to afford it at some stage in their
life.
The value of retirement units has doubled in last few
years as the demand has begun to surpass the supply.
Many retirement villages have waiting lists of up to
30 years with prices doubling over the last two years.
The demand is driven by the longer life expectancy in
South Africa along with an increase in the number
of people retiring early. Many younger investors
are purchasing retirement property to provide a
home for their parents as well as a future option for
themselves. Many investors have begun to buy units
with the intention of renting out.
www.reimag.co.za
The investment options of Retirement Villages are
extensive and include full title, sectional title, share
block and life rights. The sectional title option allows
investors to own the unit and sell or leave to relatives
as part of an inheritance, which in turn allows them
to be rented out until the new owner wishes to move
in. Share block investment means owning shares in
the development instead of individual units
The rising aspirations of
the middle class means that
many of them want to live in
properties, which they cannot
afford and so are forced to rent
Planning Ahead
Planning for retirement should be seen as an
opportunity for creating wealth instead of hoarding
funds for later on in life. Property, when used as a
means for saving for retirement, offers investors an
opportunity to create a retirement that allows them
to maintain a comfortable, safe and secure way of life.
Residential Handbook 2015
13