- Demand for retirement properties is rising.
- Coastal areas are especially popular for retirees.
- Not just retirees, but homebuyers in general are seeking properties in more remote locations, due to the work-from-home lifestyle resulting from the pandemic.
Property investment remains one of the most reliable forms of investment, and with so much choice on the property market, it can be hard to know which ones are most likely to pay dividends.
If you’re looking at property potential, here’s why retirement properties make for a wise investment.
Retirement properties: Demand on the increase
IOL.co.za reported in 2020 that life expectancy for South Africans has been increasing year-on-year. From 67.2 years in 2002, it has increased to 71.3.
Over 60s make a sizeable percentage of the population, but living longer doesn’t mean they want to work for longer.
Advantages of investing in retirement property:
- There’s a wide variety of property types in many areas geared toward retirement, so you’ll have plenty of options.
- The increasing demand means the yearly capital appreciation will be on the rise.
- You can purchase a retirement property for yourself and rent it out until you’re ready to retire.
- There is a rising demand for properties in remote areas.
The variety of locations
Popular retirement locations in South Africa include:
- Plettenberg Bay
- Jeffreys Bay
- St Francis Bay
- Port Alfred
- Mossel Bay
So there’s no shortage of options when looking for places to invest,
Rising demand for properties in remote areas
In the wake of the pandemic, more people have embraced the work-from-home lifestyle, so spacious properties in remote areas have become more valuable. There’s an overlap between this market and that of prospective retirees.
What to look for in a retirement property
You should bear in mind the following factors:
- Coastal areas are popular locations for retirees, and are drawing alot of semigration in general.
- Retirees are more active nowadays. Retirement estates should have access to outdoor attractions.
- Retirement estates should emphasise convenience and grant access to facilities such as healthcare.
- Sectional title properties are popular for retirees due to the security and sense of community.
- Don’t look for apartments in old buildings and expect them to be popular with retirees. Retirement properties are expected to be more advanced nowadays.
- Western Cape is the most popular destination for retirement in South Africa.
<h3> Improve your chances of home loan approval by getting prequalified
It helps to know what you can afford before looking at properties to invest in. This is why it’s advised to get prequalified. Prequalification gives you an idea of what you can afford, and provides you with information on your credit record, which is the most important factor in securing home loan approval.
Find out more by getting prequalified with ooba Home Loans.
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