Retirement is the fastest-growing residential investment segment in the country right now. This is according to Retire KZN, a Tongaat Hulett Developments initiative which shares retirement opportunities with the public stretching from the Upper Highway area to Umhlanga and the North Coast.
With a database of about 3,000 interested people, 32% of registered people are looking into retirement property exclusively as an investment prospect.
“KwaZulu-Natal is becoming South Africa’s number one retirement destination due to its competitive property prices and relaxed lifestyle, safe and beautiful location options, warm climate and world-class facilities and amenities on offer,” said Wicus Jacobs, director of Carmel Properties.
One such retirement development that is ideally suited to the investor market is Shoreline Sibaya, situated in the acclaimed Sibaya Coastal Precinct. This pet-friendly retirement estate, developed by Carmel Properties, features modern, single-level sectional title apartments, that consist of one-, two- and 3-bedroom options, with an array of care services provided by the onsite MyCare Centre, which will be built within phase one.
Other residential developments within the Sibaya Coastal Precinct are expected 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.
“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,” said Jacobs, noting that when buying off-plan purchasers benefit from not having to pay the transfer duty. “Those purchasing within Shoreline Sibaya have the additional benefit of not having to pay a levy stabilisation fee, as this is a cost we have taken on.”
Lastly, with the Baby Boomer generation living between 10 to 25 years longer than their parents, an exponential increase in retirement property demand is being seen. For the elderly, retirement purchasing is not always easy, which also creates a strong rental need. Retirement investors are seeing larger and more reliable rental yields than in traditional residential developments.
Photo: Artist’s impression of a bedroom in Shoreline Sibaya