Key factors driving the retirement property market
Category Retirement
Preparing for retirement is a lifetime process. You may be constantly wondering if your investments are fruitful in the long run. To be ahead of your game and ensure you have a comfortable retirement you need to stay abreast of the trends, tips and long-term investment options that can help achieve your financial goals.
These are the key factors currently driving the retirement property investment market in South Africa:
- Semigration
A large number of inland residents have relocated to the seaside. According to Lightstone Properties, there has been a significant surge of homeowners leaving Gauteng - 43% in 2021 compared to 39% in 2019 - and this trend is expected to continue in 2022.
The KwaZulu-Natal coastline is a great destination for semigration if you're seeking a lot more leisurely living away from the rush and commotion. It has the warm Indian Ocean and a subtropical climate. If you are a retirement investor who appreciates having the beach at your doorstep but prefers a suburban lifestyle, the Upper Highway's numerous peaceful residential properties may spark your interest.
- Security
Many Upper Highway residential estates are recognised for their lavishly built mansions, lush green lawns, and conservancy protection measures that provide homeowners with a tranquil environment. With crime on the upswing, investors are increasingly turning to secured residential estates to live out their retirement days. Living in a retirement community awards you with several advantages, including 24-hour security and state-of-the-art security measures. Along with top-notch security, you may have access to on-site emergency services, individualized home-based healthcare services, and recreational activities to ensure you continue a vibrant lifestyle.
- Low interest rates
The South African Reserve Bank recently increased the repo rate to 4.25% and expects to keep doing so as inflation increases and other international factors impact the country's economy. Many retirees are taking advantage of the low interest rates they are receiving to secure their property aspirations.
If you, like many other investors, can afford a retirement home, now is the best time to buy. Investing now in your future retirement home makes financial sense. You may not have the luxury of an annual pay increase when you retire and the cost of living will inevitably rise. This, in turn, makes investing in a retirement home a safe way to counteract this trend.
- Remote working
The emergence of remote working options prompted by the epidemic is one of the key motivations for relocation to calmer towns. You no longer need to commute to work, therefore you don't have to be concerned about being close to your workplace. To guarantee that your chores are accomplished, all you need is a good location with high-speed internet access. Taking this into consideration, you may begin living in your prospective retirement house now and complete the necessary home renovations for the days you plan to enjoy your retirement.
- Sustainable living
The ever-present fear of load shedding and power shortages, along with a pressing need to move toward more sustainable living, has fueled the demand for more environmentally friendly residences. You're looking for homes with solar panels, inverters, and water storage tanks as a homeowner. When it comes to retirement investing, sustainable buildings and eco-friendly estates are unquestionably a priority.
Are you planning for your retirement? Contact Seeff Hillcrest & Kloof today for the ideal retirement property.
Author: Seeff Hillcrest & Kloof
