One of the most important decisions you will ever make in your ‘Golden Years’ will be about the retirement property you decide to buy, says Dorothy Foster, Broker/Owner of RE/MAX Oaktree, which services the Stellenbosch area.
“South Africa is fortunate in that there are a wide variety of options available to property buyers looking into retirement communities. These range from modest entry-level properties to plush properties which give the potential buyer the opportunity to make the appropriate decision based on their criteria and financial status,” says Foster.Adrian Goslett, CEO of RE/MAX of Southern Africa says: “As with any property purchase the first step is to do your homework and access your finances carefully. As a general rule with buying a retirement home, once you have paid for your home, your monthly income after deductions should be four times the amount of levy that you pay. It is best to consult with a professional financial adviser to assist you in correctly working out what you can afford.”Statistically most property investors in this life-stage currently own some kind of property, however, the property they presently own no longer meets their requirements and they wish to downsize or move into a more secure environment that is close to amenities such as hospitals and frail-care facilities. Foster says that investors who own property should have it valued by a reputable estate agent; this will help them assess how much they can afford to spend on their new home. “We find that in Stellenbosch secure retirement estates such as Paradyskloof Villas are very popular among property buyers over 50 years old due to the excellent security and frail-care facilities available to the residents. There are not many properties in Stellenbosch that have all of these facilities so there is a great demand, even for clients looking to rent.
Many investors at the estate have bought their property and chose to rent it out until they are ready to move into the estate themselves. Rental incomes range from R8 000 to R12 000 per month,” says Foster.Aside from the frail-care services available to residents at Paradyskloof, there are other facilities such as a restaurant for residents and their visitors, tennis courts, a swimming pool and a dam with swans. Foster says that there are 58 sectional-title units on the estate ranging from approximately 124m2 to 260m2. There are two kinds of property options available to investors. The first option is a two-bedroom unit with two bathrooms, main en-suite and a single remote operated garage. The second option is a three-bedroom unit with two bathrooms, main en-suite and a double remote operated garage. Prices of the units differ depending on their location. Two-bedroom units that directly overlook the dam are priced at approximately R3,2 million whereas ones that don’t cost around R2,55 million. Similarly the three-bedroom units will cost between R3,5 million and R2,95 million respectively,” says Foster.According to Foster, it is important to ensure that buyers choose the retirement complex that suits their requirements and their lifestyle. There are many estate agents who specialise in retirement communities and their expert knowledge can be an invaluable tool to buyers when looking for the right community to meet their criteria. “Buyers should ask whether their lifestyle can fit into the environment that the retirement complex provides. This will ensure a happy transition into this new and exciting phase of their lives,” she concludes. For more information about property at Paradyskloof Viilas or others within Stellenbosch contact Louise Brink at RE/MAX Oaktree on 082 578 5085.