There are many investors who strongly believe that the over 55 community’s interest in forming communities based on both age and shared interests represents an excellent opportunity to invest in a growing housing market. These ‘retirement communities’ are attracting larger and larger numbers of residents due to the fact that they boast facilities that are geared towards enhancing the lifestyle of this specific demographic. This is also a demographic that is growing for a number of reasons including better medical care. This has meant increased demand and an under supply that is growing due to the fact that most of the over 55 homes are located in areas that have certain characteristics such as a warmer climate.
The large number of so called ‘Baby Boomers’ who are now reaching retirement age – and the fact that they have money to invest in property due to the fact that their children have now left home and they are downsizing means that new developments are springing up almost daily. Another attraction to the potential house buyer who wants quality tenants or who wishes to sell at a profit is the fact that many of these retirement communities are located close to institutes of higher learning. this allows residents access to quality healthcare (as many of these universities have world class health care facilities) and also the fact that the residents wish to be near children and grandchildren who attend these universities.
Many of the communities also have options for monthly payments that include the maintenance of the properties and of the community infrastructure itself. This is an added selling point for those retirees who want to simply enjoy their golden years without the stress of having to worry about the upkeep of a property.
The fact that many of the over 55 homes are located in communities that offer such value added services as regular recreational activities and opportunities for social interaction is an attraction for those who want to spend quality time with others who share their interests. These activities also take place in a location that is quiet and secure making it ideal for those in the over 55 category.
Another attraction for those who are looking to invest in a property in a community such as this is the fact that the target demographic are known to be ‘low maintenance’ tenants. Landlords can expect to experience very few problems when it comes to rowdy behavior or transgressions of the rules of occupation. In fact as far as tenants go the over 55 market is perhaps as close to the ideal as possible. the fact that there will usually only be two occupants of the home is ideal – it simply means that the property undergoes less stress and damages are unlikely to occur. Contrast that to another booming market – student accommodation and the attraction for investors becomes even more clear.
All told the investment potential of senior housing is clear. however, the only potential downside in selecting a property such as this is under supply – locating an appropriate investment opportunity can be challenging.