Has anyone had any experience with this tactic?
Cheers,
A” plays well with others
… but sometimes runs with scissors”Hi Old Bat,
Retirement homes/villages tend to be more suited for the asset rish investor who is only chasing cashflow.
Many lenders get a little nervous about retirement villages and as such you may well need to put in more than standard (20% w/o LMI) residential deposits. Most lenders are currently reluctant to allow these properties to be used as security for other lends so as a long term contributor to the future expansion of your portfolio they are questionnable.
The aging population trends indicate these properties could well have a future market but the market is relatively untested and as such future growth and saleability may be questionnable.
Costs can be high if the village is a fully serviced and you will need to check the clauses in the management rights if their are managemement agreements in place over the unit.
Also suggest a search on ‘retirement’ as the topic has come up a few times before.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
hi Cheeky. Well I touched on this subject last year when one of my real estate guys in Ipswich took me and 3 of my investors to a questionable lunch at a retirement home. We ate what the “inmates’ate. I was sad to see that the tastless food matched the tastless attitude of the homes managers.
When you buy into one of these homes that take 78% of the poor retirees pension to supply a roof and food to these good citizens you do get a cashflow positive investment but at what moral cost. These people who have worked for thier whole lives have little more to look forward to than scrabble and a 4pm dinner I wouldnt feed my cat. All are pokey and lifeless units and the people do not look at all happy with thier lot in life.
I and my investors chatted about this at a hamburger joint later that afternoon, you arent buying real estate you are buying a management system. As the laws are being changed and tightened in this industry, what seems fair and rosy now as an investment might be a non sellable bugbear in the future.For me a standard vanilla type “rent a box” home or townhouse fits my portfolio a lot better.
Karma can be a killer.DD
Don’t sweat the small stuff,and it’s all small stuff!!
I personally would not touch retirement homes. You may be able to get higher rental yields, but the growth would possibly be not as high as standard residential, they are also harder to resell and, as already stated, hard to finance.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks
Just a wild thought as my parents are considering investing in a ‘lifestyle’ for themselves so figured I’d look into it as well from an investment point of view.
I think I’ll just visit them in their new ‘lifestyle’.
[blink]
Cheers,
A” plays well with others
… but sometimes runs with scissors”
You must be logged in to reply to this topic. If you don't have an account, you can register here.
