Property investments in South Africa – have you considered retirement property?
Investing in property is a smart investment strategy that can generate decent returns. Generally considered a low-risk long term investment, buying a property and renting it out can benefit you greatly over the years.
But deciding on the right kind of investment property is key. Some people consider a small one-bedroom or bachelor pad as a property investment, as these are easy to rent. Others invest in holiday property, hoping to bring in some rental income during the year and still benefit from using the property for holidays. Some invest in fixer-uppers and spend funds fixing the property before selling it again. Each of these strategies have their pros and cons.
Another great, and potentially lucrative investment strategy is to consider a retirement property investment.
Retirement Property Investments
Buying a retirement property long before you retire and renting it out to pay off the bond before you move in is a smart investment move.
Many savvy investors in their 30s, 40s and 50s start looking into retirement properties as a stable, sensible investment that will help them to secure their future financial wellbeing. Most people choose a location that they will want to retire to, and then rent the property out until they are ready to move in themselves.
If you’re considering a retirement property as a rental investment here are some things to keep in mind:
Location, location, location
The most important rule of buying any real estate also applies to investing in retirement properties too. Consider where you would want to retire in South Africa. What lifestyle are you looking for? Which location can offer you everything you are looking for. You will want to be close to good medical care, but you’ll probably also want to consider retail options, restaurants, entertainment and transport links. If you enjoy sport and being outdoors, look for a location with mild weather all year long, and consider the natural beauty of the area.
As a landlord, you will be covering the levy costs for and collecting a rental income from your tenants. You need to ensure that levy costs are not exorbitant and that levies are used wisely within the retirement estate.
Unfortunately, security is always a top priority for anyone looking for a retirement property. Tenants looking to rent retirement property will take security into consideration before signing a rental contract. Find out about security in the area where the estate is located, as well as details about the on-site security team.
If you’re considering buying a property now, but only moving in in the next decade or two, you’ll want to be sure the house you invest in will still be in excellent condition. Find out about the build quality of the homes in the estate – you’re looking for solid construction and high quality building materials. Ideally the style of the estate should also be quite timeless and classic, so it won’t quickly date.
It goes without saying that you want to consider the facilities within the retirement estate. Be sure they suit the lifestyle you hope to have when you retire, and look for options that will appeal to potential renters. Sporting facilities like tennis courts and swimming pools are great for those hoping to maintain an active lifestyle well into retirement. On site restaurants and bars are great for social butterflies. Medical facilities on site are also an important consideration.
Invest in retirement property with Knysna Lifestyle Estate
Knysna Lifestyle Estate offers an excellent investment opportunity for anyone wanting to buy property now and rent it out until retirement. The Knysna Lifestyle Estate sales office are able to manage the rental process, or if you prefer you can let your home privately.
The Knysna Lifestyle Estate enjoys an enviable location in Knysna, surround by some of the world’s best beaches and forests. You’ll find excellent shopping and restaurant options in Knysna, Plett and George. Golfers can enjoy the many world-class courses right on their doorstep, while birders and hikers can experience the beauty of the garden route.
Levies in the Knysna Lifestyle Estate cover gardening services and maintenance, exterior maintenance, security, as well as the use of all the estate facilities including the tennis courts, pool, gym and clubhouse. When homes are sold within the estate, 25 percent of any capital appreciation on the home is allocated towards a levy stabilisation fund in order to keep future levies as low as possible.
How do I invest in a property at Knysna Lifestyle Estate?
If you’re considering buying rental property as an investment, contact our sales office to find out about the houses for sale. We can also give you an indication of the rental prices for our homes and levy costs, so you have a better idea of how much your investment could return.