Demand for South African retirement villages
Retirement estates offer a brilliant lifestyle for retirees and are an excellent investment. Pam Golding’s discusses the demand for retirement property in South Africa and how to invest in one.
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Presenter: A warm welcome back to Win A Home on Afternoon Express, exclusively on SABC 3. Private Property has teamed up with Afternoon Express to provide you with advice on the different aspects of property on estates. Within southern Africa, South Africa has the highest proportions of all the population, with more than one in eight persons, around 5.6 million, aged between 50 and over and nearly 7%, 2.9 million, aged between 60 and above. So many of these older people are choosing to live in retirement villages, and developers are scrambling to keep up with the huge demand for this type of development. Joining us once again today is Carol Reynolds, North Durban area principal for Pam Golding Properties. Welcome back to our loft.
Carol Reynolds: Thank you. Nice to be here.
Presenter: So why is there such a demand for retirement villages?
Carol Reynolds: Well, I think it is largely to do with the aging population, but also retirement villages are bridging a gap between downscaling from your old family home and moving into a traditional old age home. What developers have done know is they have created these beautiful lifestyle security estates with extra benefits, which are the health care benefits. So people are moving into retirement villages when they’re younger, and they’re enjoying this beautiful, secure, amazing lifestyle, and then they’ve got the advantage of having the health care as and when they need it.
Presenter: Okay. Because I always had a fear. I want to retire at 50. I’m going to try and see if I can retire at 50 and put that stamp on my sort of life story. But I mean, what kind of other homes can you get? Because I always worried that retiring at 30 means I’m going to have to go live in a hospital bed.
Carol Reynolds: So they’re young, trendy. They’re contemporary. The architecture’s beautiful. So they really are about creating lifestyle estates for the older population, and then with that you’ve got all the medical care and the facilities. And there’re certain factors that are distinct, things like you need to have some [inaudible], so they’re no stairs, and the paving and the landscaping is all crafted carefully so that people don’t trip and fall easily. So all those factors are taken into account.
Presenter: Okay. So let’s talk about health care because you mentioned it twice now. I think it’s one of the most vital parts about this, especially because I know both of my sets of grandparents lived in retirement villages before they passed on, and one of the greatest assets that we had was the easy access to health care.
Carol Reynolds: 100%. When you buy into a retirement village, you need to research the health care facilities very carefully because some will offer frail care. Some will offer a step down facility. Some have assisted nursing. You need to decide what it is that you’re looking for and then buy accordingly, and you even need to look at the detail of what the frail care comprises. Are there going to be nurses full time? Are they going to be doing chronic medication as and when needed? Doing their rounds, so as to speak, like doctors do in a hospital– do the nurses do rounds every morning and evening? So those sort of details are very important.
Presenter: Okay. So how does it work when you’re trying to buy into one of these retirement villages? Because one of my fears, obviously, is that– I mean, are there criteria for an age gap? I don’t want to have a young person living in there where I need it for my grandparents or my parents. How does that work?
Carol Reynolds: So that age has actually dropped quite a lot. You can now get into some retirement villages at the age of 50, which is lovely. So you’re young, healthy, vibrant, and you can enjoy this great lifestyle. But there’re also different types of ownership. So conventional ownership has full title freehold where you own the buildings and the land. And then there’s sectional title ownership where there’s common property that is owned by the body corporate, and you own your section of the buildings. That can be either an apartment or a little unit on its own. But what’s really nice with retirement is some of them have life rights schemes, which are more affordable for retirees, but you don’t actually acquire ownership of the property per se. You acquire the rights to live, use, and enjoy that property for the duration of your lifetime.
Presenter: Okay. So there are multiple ways that you can get involved in this. In terms of the hotspots, I mean, where are the hotspots in our country when it comes to retirement estates?
Carol Reynolds: Pretoria’s got Waterfall Estate that’s been very popular, the Winelands in Cape Town are very popular, and I’m proud to say that [inaudible] has probably been the most popular province at the moment for retirement because of its climate. So you can live in Howick, which is close to the Midlands, if you’re looking for a country retirement. And then obviously you’ve got the coastal belt, which is very popular. You can go down the South Coast, which is affordable and that’s why it’s popular, and the North Coast with its convenience to the airport and all the amenities, and Umhlanga, excellent hospitals, the beautiful beaches. North Coast is becoming extremely popular for retirees.
Presenter: So I’m always about the money. I wan’t to know the numbers. Is buying into a retirement estate an investment still, or is it more of an investment in like, “I just want to make sure that all these facilities are nearby”?
Carol Reynolds: To be honest, it’s one of the best investments you can make. If you look at a waiting list for retirement villages, it goes on and on and on, so you will never be short of tenants. And when you’re investing in property, you’re looking at your rental returns and you’re looking at your capital growth, and both are very good on retirement villages.
Presenter: So it pays you to retire early.
Carol Reynolds: 100% [laughter].
Presenter: Carol, thank you so much. I’m off to retire. There you have it. Retirement estates offer a brilliant lifestyle for retirees and are an excellent investment in a growing market.
Newsletter: Demand for Quality Retirement Living is on the Rise!
As more homeowners and investors hear about The Plettenberg Manor luxury retirement estate, demand for a home in our exclusive development has skyrocketed.
Only 7 units are now left in phase two
The past two weeks have been incredible: with 14 units sold in just 14 days, excitement to be a part of this incredible community has never been as high.
The Plettenberg Manor featured in Business Day:
Surge in dedicated estates
Developers rush to meet rising demand for retirement lifestyle investments
You're invited to our Film Shoot!
Due to popular demand, and with the construction’s progress of the development coming along so well, we’d like to shoot a video showcasing how great the units look, as well as how the surrounding area appears. This will give you and other prospective investors a better idea of just why properties at the Plettenberg Manor are in such high demand and why you’d find it the perfect place to retire.
ABOUT THE SHOOT
Our film crew will be on site the weekend of the 2nd of February to film shoots of all the units, as well as the surrounding area.
Friday 2 February: 5-7pm
Join shareholders as we gather in front of the Blue Crane unit no 10, filming the area’s stunning scenery and sunset shoots over the wetlands.
Saturday 3 February: 12-3pm
Testimonials with some shareholders and owners, as well as hearing your impressions and why you’d like to live in this stunning luxury retirement resort.
Baby Boomers: Why retirement is such a great investment
Did you know that South Africa’s retirement is set to double over the next 10 years?
According to SA’s Statistics Profile for Elderly citizens, 8% of the population are currently over 60. A further 16% are above 50. What this means is the retirement population will have doubled within the next decade.
Naturally, this will have an interesting impact on accommodation for retirees.
If you are from the baby boomer generation (1946 to 1964), you would have been one of the major drivers affecting the South African market for years. Your generation continues to have a positive impact on the property market, even in your retirement. In fact, you might be one of the investors looking at buying property, focusing on the rental income you will be able to generate rather than for resale.
Find out more about how you can capitalize on your retirement investment, save on retirement annuity fees and ensure you get the best possible deal for your future home:
The Plettenberg Manor has been voted one of the top 10 retirement resorts in South Africa!
We are proud to announce that our luxury retirement estate is living up to its reputation and has been voted one of South Africa’s top 10 retirement resorts by the New World Wealth and Afrasia in 2017.
During the past year the New World Wealth research team has visited over 100 residential estates across the country in order to compile this report. This years edition contains an overall top 10, as well as top 10s in three different sub-categories, including top 10 retirement estates, top 10 wildlife estates and top 10 golf estates in the country.
The Plettenberg Manor has been recognized as one of the top estates in its category: top 10 retirement estates.
Luxury apartments and retirement estates on the rise in SA
Growing mass affluence is creating growth opportunities for retirement estates, luxury apartments,
wildlife estates and hotel residences.