Is 20% ROI possible with a retirement property?
In addition to the 4 500 people who enjoy living in one of Central Developments’ 11 established retirement villages, many have invested into these retirement villages due to strong yield on rental income and ongoing growth based on high demand of these well-designed apartments and houses. It includes quality facilities, many social activities on offer and the care that these retirement villages offer as a total package for investors.
When it comes to resale, an investment in these retirement villages is an excellent choice, particularly because of the continued high demand for accommodation in safe villages managed by well-established management agents. Many return investors have faith in these developments because they have already reaped the benefits of their previous investments. For example: a three-bedroom unit in the Group’s BougainVilla Retirement Village in Pretoria, which was purchased for R1 495 000 in November 2014, was sold in July 2016 for R2 100 000, resulting in capital growth of 20% per annum.
The Group’s two new retirement developments – Celebration Retirement Estate (1 000 units) in Fourways and Waterkloof Marina Retirement Estate (1 100 units) in Pretoria – have both already attracted considerable interest. They will launch mid-2017 and towards end 2017 respectively. Prospective buyers would be well advised to jump at the chance to register in advance.
The popularity of and growing demand for Central Developments’ retirement homes are due to several beneficial factors which, amongst others, include full ownership as well as a range of luxury houses and apartments of different sizes to choose from. This gives investors of any age an ideal opportunity to invest in a property located in a prestigious area which will definitely show above-average capital growth and rental income. Additional benefits include a 24-hour frail care service, medical consulting rooms, restaurant, hair and beauty salon, library, a convenience store and transport services are ready for use when the first residents move in. As much as 90% of other retirement villages do not offer this.
All the villages are also equipped with technologically advanced security systems, manned access points and patrols throughout the premises. Furthermore, Central Developments is proud to announce that their two new retirement estates, Celebration and Waterkloof Marina, will be the first of their kind in South Africa registered for EDGE certification by the Green Building Council of South Africa (GBCSA) which will decrease costs for owners over the long run. EDGE, which stands for Excellence in Design for Greater Efficiencies, not only guarantees a design standard, but that the final built home complies with the globally recognised EDGE standard of a minimum saving of 20% in energy and water.