Can anyone give me any information or guidance regarding purchasing a retirement unit as an investment property.
Colin
Hi there
I once got some details from the agent concerning a property which on its face looked cash flow positive.
There tended to be a lot of costs involved and given the limits on who could use the property – that is you couldn’t use it yourself – or anyone else under 55 – the limitations would mean growth would be limited.
You would really have to be careful about the legal side of things too – as there are a lot of different title arrangements with retirment villages.
I have tended to stear clear of them.G’day Colin,
You should consider the following before making your decision:
* Limited capital growth
* Low LVR
* Lower control over the property in terms of renovating or adding value
* High management costs
* As raddles mentioned, you need to look at the legals or residency conditions, etc.
On the plus side, Australian population is ageing and there will be higher demand for retirement living.
There is no easy answer but I hope this information helps.cheers,
Sanjiv Gupta“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
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