Elderly snap up retirement homes

Johannesburg - Because of current low interest yields, older people are increasingly investing their money in luxury retirement villages.

Now that the housing market is beginning to lift its head and there are again prospects of capital growth, units in these villages are selling like hot cakes.

Developers are enabling people to retire in the luxurious elegance of a hotel or a village that has every conceivable convenience.

At the R1bn Retire@Midstream retirement village, the fourth country estate within the Midrand Estates development in Midrand that is being developed by Bondev, 40 properties were snapped up within an hour last Saturday.

These sales totalled R28m, with an average price of R690 000. Bondev director Riaan Bothma said the buyers are largely cash buyers.

Retire@Midstream has 240 full-title erven ranging from 600m² to 1 000m².

There are also 260 sectional-title units 54m² in size available for R630 000, as well 257m² three-bedroom units selling for up to R2.75m. The units are all on the ground floor each with its own garden, which will be maintained by the homeowners' association. Bothma said that although anyone can buy into the development, residents must be 55 years or older.

Community facilities include a restaurant, a multipurpose recreation hall, a library, an internet centre, a hair salon and a minibus service. In Cape Town the demand for units at the luxurious Oasis retirement village in Century City, which is being constructed in a joint venture between Redefine and Harries Projects, has also begun to show life in the past eight weeks.

Waiting lists

Owen Futuren, managing director of Josdel Property 137, which manages Oasis, reported that six units have been sold during this period, while there is a waiting list for the more luxurious units. He said once all the phases of the development are complete there will be five sectional title blocks with 270 buying opportunities. Currently there are two blocks, Palm Springs and Palm Grove, with a total of 184 units, 36 of which are still for sale. Prices range from R1.5m to R3.2m.

The facilities include the clubhouse with an indoor heated swimming pool, a gymnasium, a library and braai equipment. The village has a fully equipped medical centre and a specialised section has recently been created for residents suffering from Alzheimer's or dementia.

Futuren said the number of such patients is on the increase, largely attributable to stressful conditions and the fact that people are living longer.

Prospective buyers in retirement villages need to do their homework and make sure that the retirement village that they choose can meet all their future needs, especially considering that it could be their home for as much as 30 years.

- Sake24.com