Home / Home Buying & Selling  / This Joburg retirement development offers returns of up to 20% pa

This Joburg retirement development offers returns of up to 20% pa

celebration resize

The best paying tenants are aged 50 years and older. This is according to rental collection platform, PayProp, which controls the lion’s share of residential letting-related transactions in South Africa, processing monthly rental receipts and beneficiary settlements for more than 95,000 properties nationwide.

This, coupled with a very high demand and limited supply, makes retirement property one of the best and least risky options for investors. But with only a few retirement developments allowing full ownership and investors of any age to buy into it, finding these investment gems are not always that easy. When you do find a retirement development which allows anyone from the age of 18 to buy a unit and let it to tenants aged 50 years and older, this is one of the best property investments you can make.

“There is insatiable demand for secure, well managed retirement solutions offering full ownership and on-site frail-care facilities guaranteed to be operational from phase 1,” says Gerrit Brandow, director of Central Developments, which boasts a retirement portfolio of 11 developments, comprising more than 4,600 units. “Our retirement estates offer all this, as well as a lifestyle centre with various amenities such as a dining room, recreation hall for various social activities, hair and beauty salon, doctors’ consulting rooms, library and more.

“These estates are also expertly managed and have quality finishes, green architecture, fibre internet connectivity and state-of-the-art security. This makes our product the best offering in the market, increasing demand and as such they are very attractive to investors, who benefit from a strong yield on rental income and continued capital growth.”

Investment returns from year 1Retired man using a skateboard.resize

According to PayProp’s numbers some 39% of 50+ tenants rent for between R7,500 and R15,000+ per month. Therefore a development such as Celebration Retirement Estate, located opposite Northgate Mall in Johannesburg, where units are priced from R810,000 and puts rentals in this price bracket, can offer investors returns on investment of up to 20% per annum from the first year.


 


This is significant because as a whole, the South African property market is growing at a nominal rate (excluding inflation) of 4% year-on-year. FNB household and property sector strategist, John Loos, reported that in Q2 2017 the Johannesburg housing market was growing at a nominal rate of 3.2% year-on-year (or at -1.8% in real terms).

“When we consider their above average credit scores, debt levels and debt-to-income ratio, we can deduce that over 50s are on average better with debt management than younger generations. They pay on time, are less reliant on short-term loans (bad debt) and have fewer delinquencies and judgements against their name. They also go for longer periods without going more than 90 days into arrears on any credit accounts (not rent), which is also an early indicator that your tenant is experiencing financial difficulties and could in future default in part or in full on their rental commitments.” says Johette Smuts, head of data and analytics at PayProp.

Serious investors of all ages, who are either just starting out or would like to diversify their property portfolios, would therefore do well to consider buying into a well-planned, well-managed retirement development such as Celebration Retirement Estate. Due to the high demand and limited supply of this calibre of retirement property – clearly evident in the 100 units sold at Celebration within the first 14 days of its launch – these properties also resell three times faster than other residential property.

This slideshow requires JavaScript.

“Investors of any age can invest in Celebration Retirement Estate,” says Gerrit Brandow. “Many return investors have faith in our developments because they have already reaped the benefits of their previous investments in our products.”


7 reasons why Celebration Retirement Estate is a serious investment of choiceDSC_1223

  1. It is a niche product aimed at a very niche market where high demand and limited supply exists
  2. Assistance with rental management is available
  3. Invest now and occupy when you are ready to retire
  4. It is property with purpose that can be used for generations to come
  5. Proven capital growth of up to 12% per annum
  6. Achievable returns on investment of on average 12% and up to 20% per annum
  7. Affordable levies

Celebration has just opened its show village which is open daily from 9am to 5pm. It’s well worth a visit. Contact www.retirenow.co.za or 0861 73 84 73 for more information.


Celebration


central developments


 

Homehunt - Start searching now.

david.steynberg@gmail.com

David A Steynberg, managing editor and director of HomeTimes, has more than 10 years of experience as both a journalist and editor, having headed up Business Day’s HomeFront supplement, SAPOA’s range of four printed titles, digimags Asset in Africa and the South African Planning Institute’s official title, Planning Africa, as well as B2B titles, Building Africa and Water, Sewage & Effluent magazines. He began his career at Farmer’s Weekly magazine before moving on to People Magazine where he was awarded two Excellence Awards for Best Real Life feature as well as Writer of the Year runner-up. He is also a past fellow of the International Women’s Media Foundation.

Review overview
NO COMMENTS

POST A COMMENT