We have all had that grand dream – to buy a property or two such that by the time you hang up your gloves, a steady income stream is flowing through enabling you live comfortably through retirement. But is this just a dream driven by emotion?
Have you done your homework? As people begin thinking about putting something away for their life after work, they begin to look at various properties as an investment plan. With sound financial planning, investing in property might just be the right thing to do.
There are pitfalls, of course. Take the example of the Hillbrow, an area touted in the mid-90s as the next big thing in retirement property investment. Things did not go as planned and the result is that some 20-years down the line, the property values in this area have dropped by as much as 90%! In fact, there are many parts of South Africa that have been red-lined by financial institutions, which means people interested in buying those properties today will not receive any financial assistance.
Choosing the Right Property
Top online estate agents like HomeFair, will help you realise that a large factor in the outcome of your investment strategy depends on the kind of property you choose to invest in. A poor choice of property and you are not going to see any returns. In fact, you might end up losing all your hard-earned money maintaining that place.
If you do not pick the right area, not only will you fail to make any rental income from your property, the actual value of your property will keep dropping as well. However, the costs and taxes associated with that property will continue to exist – so you will be spending money and losing value on your investments!
Again, it all comes down to the area and property you choose and an online estate agent like HomeFair will help you make the right decision every time!
Making the Right Property Decision
You might be thinking of your retirement in a different way. Have you considered where you will live when you get on in years? What if you or your partner becomes frail, and needs care? What quality of life do you want to enjoy – do you want to retire into a community, or will you be happier taking your chances on your own? Whilst you are young and active these decisions seem very far away.
The scene’s not all doom and gloom though. There are plenty of choices – and the good news is that secure retirement living can be affordable. With the rise in crime in South Africa, and the fact that people have longer and longer life expectancy, property developers have created many secure lifestyle estates around the country. It makes sense to invest in your retirement accommodation as soon as you are able. So, when it comes time to downscale into an affordable, yet secure lifestyle estate, you’ll be prepared.