You'll have to join a waiting list early - and in all likelihood pay a non-refundable fee - to have any hope of securing a unit.
The high demand for accommodation in successful retirement villages has resulted in long waiting lists at these complexes.
Keith Wakefield, the chief executive of Wakefields Estate Agents, says in popular retirement complexes in KwaZulu-Natal, such as Amberfield Retirement Home and Amberglen Retirement Home in Howick, units are becoming as rare as hens' teeth.
There are 400 units at Amberfield and 430 at Amberglen. When units in these sectional title villages do come on to the market, they are usually sold within a week.
Getting on to a waiting list may incur a registration fee, which can be as high as R5 000, and may or may not be refundable. In addition, you may have to pay an ongoing fee to remain on the list.
Although it is wise to put down your name for as many retirement villages as possible to ensure you can secure the accommodation you want when you need it, the cost of keeping your name on a waiting list could result in you having to reduce your selection of potential schemes long before you make your final choice.
The St James Retirement Hotel has a two-year waiting list. If you want to get into the St James Retirement Hotel, you have to complete an application form and pay a registration fee of R200, as well as an annual subscription fee of R100.
Woodgrove Retirement Village in Pietermaritzburg has a waiting list of 437 names for its 195 units.
Woodside Village in Rondebosch in Cape Town has 206 units and a waiting list of 710 names. The estimated waiting period is 15 to 20 years. The village charges a non-refundable listing fee of R2 000.
Personal Finance randomly selected 10 different retirement villages and homes across the country, and found out the length of their waiting lists and how much it would cost you to be placed on one.
Although one retirement village claimed not to have a waiting list or to charge a fee, it had no facilities catering for retirees, and buying into this village would be tantamount to buying your own flat in any other development. Three retirement homes had waiting lists of between two and four years, but did not charge a fee to be on their lists. However, one of these homes had no frail-care facilities.
The waiting lists at the remaining homes we contacted varied from two to 16 years. One waiting list had been closed temporarily.
In most cases, registration fees were non-refundable and ranged from R100 to R5 000. In only one instance was the fee refundable, without interest, if you decided you no longer wanted or needed to live in the village.
One of the retirement homes, which has a 14-year waiting list, required a R100 registration fee and an annual fee of R50 to remain on the waiting list.
A final word: Do your homework
Before signing up to buy into a retirement complex, consult your financial planner, a legal adviser or a retirement village specialist. The price you pay for their advice may well save you a great many financial headaches later on, when you can least afford them.
However, it is equally important to get a good sense of the character of the village. Speak to residents and spend as much time as you can at the facility. Residents can give you an insider's view of the complex and how it is run, helping you to assess whether you will fit in.
Margie van Zyl, the president of the South African Association for Homes of the Aged, which represents many welfare organisations that run and/or have developed retirement villages, says a definitive database of retirement homes does not exist.
The website www.seniorservice.co.za provides a list of some retirement villages in South Africa. The book Guide to Retirement Places by Lesley McAlpine can also help you to identify retirement villages. Neither of these lists, however, is comprehensive.
This article was first published in Personal Finance magazine, 1st Quarter 2008. See what's in our latest issue