South Africans are fortunate enough that when we get older we can choose to live in retirement complexes which are readily available across the country. Even if we choose to still live at home, good weather means that we can spend a lot of time outside with friends. It is very easy to maintain a social life, regardless of age.
Challenges facing the elderly in the UK and how investors can help
Conversely, even though the UK is currently experiencing a heatwave the weather is usually very cool. The elderly are confined to their homes and retirement homes are a relatively new phenomenon. These circumstances have lead to a “loneliness epidemic”, which has been shown to be as harmful as smoking 15 cigarettes a day. As the UK’s large “baby boomer” generation reaches retirement age, there is a growing appetite amongst investors for the emerging retirement home market .
UK retirement property has been named one of strongest asset classes. Overall, Knight Frank has estimated that £20bn of overseas equity is set for investment in the sector.
Considering the fundamentals and strong returns, what opportunities are there for the everyday South African who is interested in investing too?
Portpatrick – luxury retirement in tranquil Scotland
Almost a quarter of the population living in Scotland’s Galloway and Dumfries region are ages 65 or over. This is in part due to preferring the countryside, away from busy cities and conurbations.
The historic ruins of Portpatrick, along with the golf course and rugged scenery makes it an appealing destination for both long-term and short-term residents.
- 10% net rental over a ten-year commercial lease
- Income paid monthly
- Prices start from R1.5m
- Hands-off investment – ideal for South Africans
- Multiple buy-back options up to 125% in year 10
Contact One Touch Property today to discover more investment opportunities and what makes retirement home investments a strong asset class. Alternatively, download the guide to find out more about this emerging investment type.