Though this era is all about millennial and how they are affecting the real estate market, if we can stop thinking about them for one minute and shift our attention to baby boomers, we might hit it big.
Baby-boomers were a productive lot, and due to this, they increased the demand for single-family homes residential. From apartments, they moved to private residences. However, that period and era is over, the baby boomers are retiring, and this brings us to the gold. These hardworking citizens are in need of retirement homes, to spend their peaceful golden years.
Their idea of retiring home is something closer to family, serene area with a moderate climate. This might be the right opportunity to strike the iron. Investing in retirement homes will bring a steady cash flow as well as a hefty profit.
Understanding a Retirement community:
Retirement communities designed for citizens around the age of 55 and older. The amenities and such are design, keeping in mind the needs and comforts of senior citizens. Part-time employment is also a perk of these communities. These communities are also gated and adequately secured. These communities have almost everything on-site, which makes travel unnecessary.
Think of it as a resort that gives you 24 hours of service with staff ready to take on all your requests. Although ever retirement community is different, they still have some basic amenities in common, such as:
- Dining room
- Common room
- Recreation room
- Fitness room or Gym
- 24/7 Housekeeping
You might think it’s just a retirement center; the residents don’t go, so what’s the point of location, won’t any location do? The thing is elderly people require mild or moderate climate; this is the reason why most retirement centers are in states like Arizona, Texas, as well as Florida and California.
Apart from the mild climate, a retirement community also needs to be in a serene environment such as near a beach or someplace that has a peaceful surrounding. Though a community like this is always within reach of public transport, they also provide their residents with shuttle service as well.
Advantages of Investing in Retirement Properties:
There is never a shortage of people enrolling in a retirement community; these are well-off people with upper to a middle-class income. Some a rich and have stable cash flow as well. Baby-boomers are looking for a community that will help him live life in peace and with certain lifestyle choices are always on the lookout of such great communities.
Look at the numbers, US residents of ages 65 or older will increase from 46 million to over 98 million by the end of 2060. The figure clearly shows that the demand for retirement communities will not cease to grow.
Retirement communities are attractive due to the facilities they offer. They are tailor-made resorts for elderly and retired people. Hence, they are a genuine attraction. There are medical staff, lifts, assistance, dinners, and recreation opportunities. They also have activities and fitness groups to keep the residents active.
Who doesn’t want a quiet life after the hardworking past? A retirement home is a perfect place to settle down, with peace and quiet all around. Many baby-boomers are looking to take a break from the outside world.
Disadvantages of Investing in a Retirement house:
- You might have to think about the monthly fee that needs to be paid for the upkeep; even if you have rented out the property.
- Since all the renters are 55 or above; you have a minimal market to fish from.
- There is little room to stretch with all the rules and regulation as well as being away from the city; there is an issue of limited flexibility.
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