According to Lightstone Properties, 44 000 properties currently owned by over-60s are in formal retirement villages, indicating retirement estate living is on the rise, with retirees increasingly seeking properties that offer security, a quality lifestyle and a solid return on investment.
While investing in retirement estates are a good option, Barto van der Merwe, managing director of Renishaw Property Developments, says there are several factors to consider, before making the leap.
“Retirement should be a time of enjoyment, ease and security,” he said.
“When making this investment, buyers need to consider what is truly included. It is about more than just the home, consider the lifestyle, amenities and added value that comes with it.”
Here are seven key factors to consider before investing in a retirement property:
• What is included in the levy?
An all-inclusive levy means that you are actually saving on monthly costs, making this a more affordable long-term investment,” said Van der Merwe.
“It also means that everyday maintenance items are covered.”
All-inclusive levies could include 24-hour security, Wi-Fi, building insurance, external home maintenance, use of communal facilities as well as services such as garden refuse removal, postal collection and transport
“Structured levies mean that residents avoid the stress of unexpected costs and the need for additional monthly service fees,” he said.
• Home-based care
Healthcare is critical in your golden years with the modern trend shifting away from traditional frail care centres, instead focusing on home-based healthcare.
This allows residents to received quality health care, including preventative was well as rehabilitative care in the comfort of their own homes.
• Fitness
Studies continue to show that physical fitness is one of the best ways for retirees to remain active and healthy.
Van der Merwe explained that retirement estates should ideally offer a variety of recreational opportunities.
He recommends looking for facilities with a swimming pool for low-impact exercise, nature trails for walking or jogging, safe natural outdoor facilities as well as golf and other organised sporting facilities.
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• Security features
“True peace of mind comes from knowing your environment is secure,” said Van der Merwe.
“Retirement estates should offer comprehensive yet unobtrusive security including electrified perimeter fencing, 24-hour patrolling security, high-tech camera systems, fast emergency response times and integration with local law enforcement and community policing.”
• Potential for value growth
Retirement homes are often a last property investment for many, which is why it is important to look at the potential growth in value of this investment.
“When considering established retirement estates, investors can look at comparative properties to discover how much the property value has grown,” said Van der Merwe.
“Some properties have enjoyed a 60% increase in value in just six years. This is a testament of a solid return on investment.”
• Where is the property based?
Location is everything when it comes to retirement living.
Current trends indicate that many retirees are heading to the Kwa-Zulu Natal coast for the subtropical climate and lifestyle.
“No matter where you choose to invest, pay attention to the village’s proximity to retail centres, healthcare facilities and local attractions,” said Van der Merwe.
• What is included in the sale?
Investing in a retirement home means knowing what comes standard. Investors need to look for quality-built homes with energy-efficient design and modern fittings that last.
“An often-overlooked factor is gardens. An established indigenous garden adds significant value to a home when considering the high cost of landscaping,” said Van der Merwe.
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