Retirement property: a foolproof investment model

Whether you are investing in an off-plan opportunity or a fully developed retirement estate, the growing interest in retirement property as an investment opportunity is a result of a few fundamental factors, namely; high demand for the product, favourable capital appreciation and lucrative rental returns.

“It goes without saying that KwaZulu-Natal is becoming South Africa’s number one retirement destination due to its competitive property prices, relaxed lifestyle, beautiful location options, warm climate and world-class facilities and amenities on offer,” shares Wicus Jacobs, Director of Carmel Properties.

Taking care of retirement

One of KwaZulu-Natal’s prized residential nodes is the Sibaya Coastal Precinct, a secure North Coast location positioned close to the sea, forest and convenient retail centres. This precinct recently introduced its very first retirement development opportunity, Shoreline Sibaya, which neighbours the acclaimed Signature Sibaya Estate, who offer KwaZulu-Natal’s most expensive freehold stands.

Location, location, location

Location is a huge component when it comes to investing in property, and retirement property is no different; with a prized location comes better capital appreciation. It is expected that other residential developments within the Sibaya Coastal Precinct are to enjoy a minimum of 30% capital appreciation between securing a unit and subsequent transfer.

This capital appreciation is seen to be further enhanced in the case of an off-plan retirement estate, based on the demand and the fact that Shoreline Sibaya is the only retirement estate in this node.

Retirement investments

Shoreline Sibaya is ideal for the investor market. This pet-friendly retirement estate, developed by Carmel Properties, features modern single-level sectional title 1, 2 and 3-bedroom apartments starting at R1,475 million. Along with providing an unsurpassed lifestyle, Shoreline Sibaya offers residents an array of specialised care services provided by the onsite MyCare Centre, which will be built within phase 1.

“Off-plan developments like Shoreline Sibaya experience capital appreciation between securing the purchase upfront (with a 10% deposit), and the transfer of the unit on completion. In most cases, the value and demand for retirement property escalates once retirees see the development is complete,” says Jacobs.

“Furthermore, when buying off-plan you benefit from not having to pay the transfer duty, which is a huge incentive. Those purchasing within Shoreline Sibaya have the added benefit of not having to pay a levy stabilisation fee, as this is a cost we have taken on,” continues Jacobs.

For those investing in retirement property, you can be assured that retirement property will always be in demand. With the Baby Boomer generation living between 10 – 25 years longer than their parents, coupled with the fact that already established retirement estates are seeing waiting lists extend from 4 to 20 years; we can safely state that there will be an increased demand for retirement property.

Additionally, when renting retirement property out, keep in mind that purchasing property is sometimes not as easy for retirees, making the rental option more feasible. Retirement investors are seeing larger and more reliable rental yields, than in traditional residential developments.

Retirement property is taking property investment to the next level and something to seriously consider if you are looking to see great returns.

For information on Shoreline Sibaya visit www.shorelinesibaya.co.za or contact +27 87 095 1658.