Hi Guys,
A quick question relating to Over 55’s Housing. What are peoples thoughts on this type of housing as an investment? These properties are typically villa/ strata type properties and the strata rules specify that property can only be lived in by people over the age of 55. I just noticed that prices for these investments tend to be below market averages (due maybe to the smaller pool of tennants allowed to live there? – or other stigma??). But It is for this reason that these types of properties interest me because of the (a) lower entry price vs market; and (b) higher yields due to lower price but also those 55+ tennants are generally willing to pay a rental premium to live amongst people their own age (ie no noisy young neighbours to worry about)I think this is different to retirement village properties where you pay an ongoing fee/rental with option straight from your pension.
So my question is: What are peoples thoughts and experiences regarding this type of property? Steve have you ever looked at this type of property????
your thoughts as always are appreciated
Dan,
I’ve not looked at this type of property before in a lot of detail.
However, the points you raise suggest that for the right investor it could be a fantastic niche.
It is certainly a growth market too.
Personally, I’d not aim at the expensive end of the market, which is where I see most of the retirement property in my area.
Instead I’d look to do a JV with the government to build them on a guaranteed yield for a niche in the market.
Regards,
Steve McKnight
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