The national lockdown, in an effort to slow the spread of COVID-19, has forced the closure of many businesses for an extended period.
In its effort to stabilise an already embattled economy during this unprecedented situation, and with an eye on the very low inflation rate, the South African Reserve Bank (SARB) has cut the repo rate by a further 50 basis points to 3.75 percent – a significant drop from 6.5 percent at the start of the year.
This, coupled with the re-opening of the South African deeds’ office earlier this month, has been welcomed by property developers who anticipate, albeit cautiously, a general revival of the property market.
“The move by the South African Reserve Bank is likely to have favourable consequences for the retirement property market because – although most retirees don’t require home loans – many investments in retirement homes are dependent on the sale of an existing property,” explained Phil Barker of Renishaw Property Developments, developers of Renishaw Hills.
He said the changes would be welcomed by many homeowners who have been unable to invest in a retirement village because of the difficulty of selling their current home in a depressed property market.
Barker acknowledged the effect of the weak economy on the market, but believes that the lowest interest rates in half a century will certainly have a positive impact.
“The speed and size of the rate cuts are unprecedented, and while we still anticipate a bit of hesitation as lockdown eases, it’s likely that people who were battling to sell property before will have an easier time as we move into Level Three,” he continued.
“Lower interest rates are bullish for the property market in general, largely due to the fact that bond payments reduce, making homes more affordable. But, over and above this, it will also make investing in retirement properties as a buy-to-rent option incredibly attractive right now.”
Renishaw Hills is a secure mature lifestyle village, part of the Mpambanyoni Conservation Development in the Scottburgh area of the KwaZulu-Natal mid-South Coast.
This highly in-demand mature lifestyle estate offers residents quality-made homes and incredible on-site facilities, in one of the country’s most sought-after coastal areas.
Offering a healthy, active lifestyle, Renishaw Hills is also leading the industry in terms of healthcare options, offering home-based care through renowned service provider, TruCare.
Barker said that, while the long-term impacts of the Covid-19 pandemic were still to revealed, it is likely that people would put a lot more consideration into the location and unique offerings of retirement estates: “The lockdown and restriction of movement has really put individual priorities into sharp focus and made people more introspective,” continued Barker.
“I think people are now considering investing in mature lifestyle villages that are located in natural environments away from busy urban areas.
Elements such as home-based care in this ‘new normal’ will also be a big deciding factor on home investment, considering the need for physical distancing and quality healthcare in later years.”
As of Monday, 1 June, Renishaw Hills will be offering physical tours – as well as continuing with the online virtual tours – of the mature lifestyle village.
Barker commented: “We are absolutely delighted that, with the implementation of Level 3 of the national lockdown, Renishaw Hills will be open for business.”
All precautionary health and safety measures will be adhered to, with tours conducted by Julieann Hampson, Head of Sales at Renishaw Hills.
As a former nurse, Julieann has an intimate understanding of the necessary health protocols to be followed on all site visits. For those wanting a virtual tour, an appointment can be made for an online tour with Julieann which will be conducted via Zoom or WhatsApp.