- ladyhawkMember@ladyhawkJoin Date: 2010Post Count: 13
Has anyone invested in a unit in a retirement village? Somewhere like this…
My parents and I have been recently discussing the option of purchasing a unit in a retirement village. Initially renting it out and then have it for when my parents want/need to move into it.
Is this a viable option?
Is it allowed?
Any help/advice with regards to this would be appreciated.
Thanks in advance.CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
They have their own rules. You'd need to read the regulations of the one you are considering.
When it comes to sell there may be limited buyers. I'm not sure how they stack up as for as CG goes. .
But as a safeguard for your parents to move into it may be worth looking into.
Can you do renovations? What restrictions are there? Can you sell to anbone? What age can live there? Can you have visitors stay?
Check ongoing costs too. Strata? Medical support??TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
There are over 55's development in certain areas which are quite valuable and then there are these types of properties. They are a money sucker and these badboys are very hard to finance.
ShahinDerekMember@derekJoin Date: 2004Post Count: 3,544
In the main 'Retirement Villages' are not a good investment. They have certainly been peddled as great investments largely due to their, often, high gross rent return. If you are seriously pursuing this as an investment make sure you have a clear handle on the ongoing costs before you make a decision to invest.
Your parent's situation does complicate matters somewhat and I can understand your thinking.
How far from "moving into a village' are they. If it is sometime then you/they may be better of considering an entirely different property to invest in. Depending on the performance of the property and whether or not it is cashflow positive at the time of retirement your parents can then make a sell/hold decision based on what the property has done at the time they retire, what their overall situation is and so on.
You/they may have more success and an easier decision making process considering the two issues separately rather than jointly.