Retirement planning isn’t just about the how but also the where, and the savvy investment to look for is tomorrow’s paradise at today’s prices, then make it earn for you until the day you’re finally ready leave the rat race behind.
That’s according to James Dall, Managing Director of High Street Auctions, who said South Africans serious about retirement planning should consider investing in Mauritian luxury property now as it can also be an idyllic holiday destination and a source of passive income until the sun and leisure beckons permanently.
High Street Auctions is hosting its inaugural Mauritian auction on July 28, when a total of 17 existing and off-plan properties come under the hammer. These range from luxurious penthouses and contemporary apartments to lavish villas all situated within exclusive coastal developments.
“Turning 50 is no longer the first step on the slippery slope towards old age and retirement,” says Dall, “and many now regard it as a new lease on life; an opportunity to live their dream lifestyle and do all the things they never had time for while they were raising children and building careers.
“In fact, when planning their retirement, they aren’t merely looking to buy property in which to live once they retire; they want an investment that grows their wealth, offers returns in the short term and one which they can enjoy in the meantime.
“And not only are they happy to move away from familiar neighbourhoods a lot sooner, many are also moving further afield, often to sunnier climes - and they are investing in their retirement well ahead of time for a number of compelling reasons.”
Dall adds that it’s becoming increasingly common for people in their 40’s to already be looking at retirement property options both here and abroad.
“Mauritius ticks the most boxes for many of these investors because property is very competitively priced compared to South Africa, it’s only a four-hour flight away and the idyllic setting makes it the perfect place for family holidays and, ultimately, retirement.
“Most developments also have rental pools that are managed for home owners, which means that investments can be income-producing when the owners are not in residence.”
Mauritian investment and emigration policies also circumvent one of the main deterrents potential investors face when considering moving abroad.
“For many people, the biggest obstacle to enjoying their golden years in another country is having to leave behind family, especially ageing parents and children who have only just flown the nest to embark on their tertiary studies or enter the job market for the very first time.
“However, for an investment of US$375 000 (approximately R5.4 million) buyers automatically obtain permanent residency for children of all ages as well as parents.”
Dall says what makes this proposition doubly attractive is the fact that the residency isn’t confined to the registered owner of the property.
According to official Mauritian government investment policy guidelines, for real estate investments of US$375 000 and above, permanent residence status extends to:
- The buyer’s spouse;
- The buyer’s children, including children of his or her spouse; and
- The buyer’s parents.
Dall says it’s also worthwhile to note that non-citizens and their families who have Residence Permits under a real estate scheme, are allowed to work or invest in Mauritius without an Occupation or Work Permit, which means extended families can relocate together and the generations who choose to work, can do so.
“If you are already 50 years of age or older and not keen or able to meet the minimum financial property investment requirement for residency, you still qualify for a retirement permit as long as you meet the amended requirements for retirees.
“These include an initial transfer of at least $2 500 or its equivalent in freely convertible foreign currency into a Mauritian bank account with a recurring income thereafter of at least $1 500 per month.
“And although this permit doesn’t allow the holder to work in Mauritius, you can, however, have business interests outside of Mauritius.”
He adds that in the past, South African retirees were only able to obtain a three-year renewable permit for Mauritius but this has now been extended to ten years.
Dall says detailed investor packs of all the Mauritian properties going under the High Street Auctions hammer on July 28 are available on www.hightstreetauctions.com.
“For investors looking to include the whole family, options include one breath-taking, ready to occupy apartment at Manta Cove Resort in the vibrant Black River area or luxury villas in the exclusive Secret Private Villa Resort and Serenity Villas, both in Grand Baie, the Monaco of Mauritius.
“The Domaine des Alizees Club and Spa and Ki Resort in Grand Baie are the perfect solutions for buyers with an eye on compact convenience and a flexible lifestyle.”
Existing properties include three contemporary and elegantly furnished two-bedroom apartments in Domaine des Alizees Club and Spa in Grand Baie, a luxury villa in Serenity and an expansive four-bedroom apartment in Manta Cove.
Investors who prefer to have a say in the finishes and who have more time on their side have numerous off-plan options which include: Six stylish two-bedroom apartments and two luxurious penthouses in Ki-Resort, Grand Baie and four stunning villas in Secret Private Villa Resort.
“Strident upgrades to the infrastructure and advancements in banking, medical care and technology in recent years have definitively established Mauritius as far more than a holiday destination,” says Dall.
“Health care, especially, is a consideration for retirees and with Mauritius boasting world class hospitals and surgeons, many of whom have trained abroad in France, Australia and South Africa, they can certainly enjoy peace of mind in this regard.”
He adds that those who buy residential property are exempt from having to renew their residence permits and that, although foreign retirees are permitted to live anywhere on the island, real estate investors may only buy property in approved developments like those featured in the upcoming auction.
With some of the most beautiful beaches in the world, a hospitable local population, excellent medical care and the epitome of luxurious island living, Mauritius is fast emerging as a preferred destination for non-citizens looking for an enticing place to retire.
