There are many benefits to investing in a more manageable apartment later in life, but retirees must consider some key factors before making that all important decision.
Barto van der Merwe, Managing Director, Renishaw Property Developments said: "Today’s retirees are not necessarily looking for just a bit of downtime, but are maximising their time with hobbies, activities, and travel where possible."
"Many have families around the globe, and this means dividing their time accordingly. They’re also taking advantage of active outdoor lifestyles, getting involved in clubs and community initiatives, and an apartment is better suited to that way of life. However, investors must ensure these apartments meet the unique needs of the retiree."
Accessibility
An important aspect that retirees need to consider is having easy access to daily necessities.
When purchasing an apartment in an estate, investors should check the proximity to shopping centres, medical facilities, and leisure activities.
Estates that have facilities such as on-site sports facilities, community centres, and recreational offerings like clubs and outreach programmes will fulfil all these needs.
Convenience
Apartments that have stairs and cramped rooms will not suit the retirement lifestyle.
Therefore, theses apartments must be designed with comfortable large rooms, minimising the need for wide hallways, and single-level access for improved mobility.
Safety
For any homeowner, safety and security is a top priority, and when buying an apartment in a gated estate, this should come standard.
Investors should consider elements like:
- controlled access
- daily patrols
- 24-hour CCTV
- electrified perimeter fencing.
Apartments generally have fewer access points and the proximity to neighbours is a plus point as it is a major deterrent for criminal activity.
Costs
It is vital that you understand all of the financial commitments that are connected with apartment living.
Compare the levies between various estates and ensure that the levies cover elements such as maintenance, gardening, insurance, and waste removal.
Apartments that are well-designed will also have natural lighting and cooling, lessening their reliance on electrical appliances.
Natural spaces
While apartments do not come with a garden, this should not be an issue if the estate has ample natural space to explore.
For investors, this means less maintenance in terms of garden upkeep, with the added advantage of enjoying the natural world through trails plus scenic views.
The cost of retirement property
Lightstone data has revealed that the average price of a property in retirement complexes is R1.9 million while a total of R29 billion was spent on over 15,000 properties in a period of five years.
Lightstone is a provider information, valuations and market intelligence about property in South Africa.
The provinces where a significant number of the sales took place include KwaZulu-Natal, the Western Cape and Gauteng. Out of the three provinces, the Western Cape had the highest average sales prices
While there are a large number of seniors currently living in homes they purchased earlier in life, the demand for purpose-built retirement communities is on the rise, with the following factors driving this trend:
– a growing senior population
– changes in lifestyle preferences
– rising financial security among older adults.
The Lightstone data also highlighted the gap in the formal retirement property market.
According to Hayley Ivins-Downes, Managing Executive Real Estate, Lightstone, there is a huge gap in the availability of formal retirement housing options.
Of the 650 retirement complexes that were identified by Lightstone, only a small percentage accommodates the senior population which highlights the need for more diverse and accessible retirement housing solutions, particularly in the affordable segment.
Around 13% of the retirement property stock was developed post 2020 and a little over 25% were built before 2000. The balance of retirement properties were built in between.
Some 15,000 properties (35%) are in estates like gated communities that have shared access/exit gate and 29,000 (65%) are sectional title schemes.
Ivins-Downes said that the majority of the 1.5 million non-retirement properties owned by people who are 60 and older are freehold, followed by sectional title schemes and then estates.
IOL Property