This is the new term used for retirement communities, and more people are becoming interested in them when it comes to making investments. They’re typically smaller, but they can be apartments, townhouses, or condos. Although they do provide a sense of belonging to seniors, there are some things to consider whether you want to invest in this kind of property or not.
There Will Always Be Seniors
Baby boomers are always looking for locations to spend their retirement years, away from the noise and excitement of younger generations. They can spend their days feeling independent while still having all their amenities onhand, especially with the number of new 55+ communities in arizona. They are ideal buyers, as well as renters, because they want to be able to maintain their current living style without having to put in a lot of time and effort.
The Demand For Such Communities Will Always Be There
By the end of 2060, there are going to be at least 98 million seniors looking for communities for them to spend their golden years in. This will lead to occupancy rates going up, requiring more communities to be made so that everyone can have comfortable and affordable retirement properties for them to own.
One of the best things about +55 rental properties is that there will reduced wear and tear on them. The majority of seniors are without children or pets, so there are less opportunities for there to be damage to the property. They are also less likely to hold wild dinner parties, and are more likely to treat their units with care and respect. That means fewer repairs in your future, saving you more money in the long run having to hire some to do the repairs for you.
Fees And Expenses
Despite all of these advantages, there are some cons that come with owning +55 rental properties. Monthly fees have to be charged to residents to maintain things like housekeeping, utilities, maintenance, and membership fees for fitness and recreation centers. There’s no guarantee that every resident will pay on time either, which can lead to a lack of funds in keeping everything balanced in the books.
There’s A Limited Market
Investing in a retirement community does come with very few risks, but there is a limited market risk that you have to take into consideration. Because you can only market to seniors, it’s unlikely that you’ll be able to fill every single unit and ensure that your investment is sound. That can leave you with a lot of empty units that you can’t fill with younger individuals who do have the funds to buy but aren’t allowed to.
Hopefully, these cons shouldn’t be enough to turn you off from the idea, merely considerations you need to take into account before making any kind of investment decision. It’s important that you do all the research you need and consider speaking to your financial advisor to see if investing in +55 communities would be a good decision to make.