Investment Opportunities
Retirement Investment Opportunities
Sixty may be the new 40, according to researchers who say people are hitting ‘middle age’ later, but investors in the retirement property market looking for solid returns are even younger – with some in their 30s.
And the first rule for any potential investor is to get in early!
Retirement property makes an excellent investment, and the earlier you get started, the greater the rewards. While most retirement annuities have limits to how much capital you can withdraw as cash on retirement, properties can be sold at any time to liquidate their full value.
It is important to differentiate what the outcome is that you require as it will have a significant influence on your investment decision.
- If your output requirement is pure investment with no plan to live there yourself, you will choose the investment which will provide you with the highest monthly rental ROI and potentially a lower capital growth
- However, if your main requirement is to invest for your own future and you (probably) plan to live there one day, the way in which you decide on the best investment option is significantly different. If you are not able to visualise yourself living in the space one day, you may have the wrong unit. With this type of investment your rental ROI is of lesser importance and the focus is on long term capital growth – which can be as high as 10% year on year
Depending on the value of the investment and your cash contribution, subsidisation of bond repayments may be applicable for up to 5 years and must be taken into consideration.
RetirementSA is continuously consulting with numerous Developers throughout the Western Cape the rest of South Africa on proposed Retirement Villages & Estates.
Through your input, you enable us to assure that the needs, requirements and dreams of the members of the public are conveyed when it matters most, right at the beginning of the planning process.
Our registered clients are informed electronically of any new or upcoming investment opportunities. Register your details today to be informed!
Can you afford an investment property? ooba Home Loans offer a free pre-qualification service that will provide the answer. Request your answer today!