Retiring soon? You need to be aware of these property trends
Category News
2022 kicked off as an eventful year filled with various challenges and a fluctuating market still very much within the buyer's pocket. Despite the challenges, many are still looking forward to a return to some semblance of normalcy, marking 2022 as the year where the only direction is up.
On a more serious note, the past two years have come with their own set of significant changes, especially when considering long-term investments and decision making. One such avenue that was particularly impacted by this sudden reassessment of priorities was the retirement property sector.
We take a closer look at the various property trends that have affected this sector, and how to make the most of your accrued investments going forward.
Shifting dynamics
One thing to take note of is the factors that drive investors to make the decisions that they do. In recent years, it's become more apparent that these factors are changing. Before Covid, convenience was key. The closer you lived to the city the easier it was to commute. Today, the focus has shifted to lifestyle choices since now people have the option to work from home.
For those who were searching for a means to take early retirement, the pandemic provided them with the avenue to go forward. Others were more concerned about health and safety, the benefits of living in a community, and general wellbeing. Forcing them to ride out the storm for the potential of a better stacking of the cards down the line.
Semigration
Destinations like the Western Cape, the northern coasts of Kwa-Zulu Natal, and the Wild Coast in the Eastern Cape have always been popular for holiday homes. However, we are seeing a sudden and surging influx of homeowners moving away from their inland homes, and making these destinations their primary address.
Stats show that an increase in homeowners moving from Gauteng to these areas has risen from 39% in 2019 to 43% in 2021. Just a single percentage point represents an average of 158 000 people where experts are warning that this is only likely to increase over time.
Coastal Living
Following the semigration trend it is clear that the next factor is where along the coast offers the best value for retirees. While the Western Cape remains a popular seaside destination for international and local tourists, the real gem remains the KZN coastline.
This is in large part due to the subtropical climate and the warm Indian Ocean being a massive pull for investors and retirees alike. Perhaps the best value for money remains the South Coast between Amanzimtoti and Port Shepstone. These areas are seeing homes selling at a far higher rate than their northern coast counterparts, defining this area as an emergent hot spot for investors.
The good news is that the more interest an area obtains, the higher the value of the property and the more we see the potential for new and modern developments. This opens a window of opportunity for retirees to capitalise on buying a home now as opposed to later, doubling back to our previous point of a possible reason why there is a trend of people taking early retirement in the first place.
Off the grid lifestyles,
The desire to live a more sustainable and eco-friendly lifestyle is not an entirely new concept. South Africans, in particular, have become pretty accustomed to intermittent periods of load shedding and disruptive outages pushing them towards the attractive prospect of having their homes fitted with solar panels, inverters, and water storage solutions.
Retirees should consider this option since homes that are constructed or outfitted with sustainable power-saving devices are a priority on the market. Not only does it save money in the long run, but it provides one with a decent backup solution to an unstable feed.
Read our previous article on Getting Partially Off the Grid
Security consciousness
South Africans are no strangers to the value of a functional home-based security system. But the recent civil unrest in July of 2021 has led to a higher demand for security in the form of lifestyle estates, gated communities, and retirement villages.
For those looking for a retirement property, real estate that offers 24-hour, real-time, sophisticated, and unobtrusive security measures offer much-needed security as we become more vulnerable in our golden years. Moreover, properties that offer these amenities are highly sought after in the buyer's market of Gauteng.
Home-based healthcare
There is perhaps nothing more disconcerting than spending your final days in frail care centres. South African retirees in particular are shifting towards lifestyle estates that offer home-based healthcare. Not only do residents have the luxury of maintaining their lifestyle but they enjoy far more independence on average.
What's more, healthcare providers within these estates are focusing their efforts on preventative healthcare measures to optimise living standards.
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Author: LV Digital
