Hi everyone!
I'm new to property investing and was just having a look at pensioner retirement village units for investment. They are portrayed to have a pretty good and steady returns.
Does anyone have any experience in this area, and are there any specific factors to look out for?
Thanks!Hi there
I recently looked into this myself and it all seemed very attractive. Great returns (I think it was 8%) and guarenteed rental. Plus, the popoulation is aging and therefore there will always be a market . However, I found out that many banks will not use this in future to lend on. So whilst very cheap and secure, any money is effectively tied up and the banks wont take this into consideration when applying for a loan for further property. The same seems to happen with student accomodation and anything else purpose-built. Its a shame but what can you do? I gave it a miss as was interested in buying a couple of properties in the next few years. Hope this helps!
Thanks for the advice Rator! I would have never thought about the finance side affecting it. Its really helpful to know.
I might need to give it miss too as I would like to look at investing in more property in the future.As the retirement units are in a lower range, yet have strong and steady returns, I even started thinking of perhaps holding them for the long term. I'm nearly thirty now, and I know this is a long way from retirement, but by the time that happens, I would have paid off the mortgage, (say 30 year loan) and then I could have to choice to move into it myself, or live off the rental return. I guess its just some security for the long term future.
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