Investing in over 50's "lifestyle" villages.

With Australia officially becoming a designated "Aging" population come 2020. What are people's thoughts on investing in over 50's villages? With the expanding trend towards rent for lifers, why would this not become a viable option in the next decade or so?

Pros and cons. Discuss.

 

Very interesting. I'd like to build them then let the "evil old people companies" sign up the costumers for the village type ones. They tend to siphon the CG into their coffers and charge top $ for all the optional extras.

 

Hard to get finance.

Otherwise good if you own it and fees do not take out your knee caps.

Remember limited buyers, limited renters. Found some with great returns.

 

Becoming a less limited target pool by the day.

 

There are enough emerging and growing ASX listed companies where you can invest in these business models. Can be a better bet in getting in and out easily compared to purchasing this type of property directly.

 

They are what they are. Not sure much else to say.

 

I wouldn't mind building some over 55s units and selling/renting them out. WA has a rule where you have to build a minimum of 5 of them which they are thinking of amending down to 2 which could make it very attractive.

 

Yes this was another thought. Own the whole "complex". Or groups of units within a complex. In my area they're usually built in duplex pairs. Some as large as 50-70 duplex pairs.

 

It depends if you want to be a part of investing in something that offers group ammenities - pools, gyms etc which like apartment complexes comes with hassles and strata fees.
I'm more leaning towards what is still an over 55s product but no ammenities. In WA an over 55s product allows you only supply 2/3rds of the block size for the zoning - ie if you need 300sqm of land normally to subdivide then for over 55s you only need 200sqm - this can create an option for blocks that normally wouldn't be subdividable. You have a restriction on the size of the dwelling - 100sqm not including garages/storerooms etc and of course the owner/tenant needs to be over 55.

 

Someone built 15 or so of them here in Perth that all had street frontages and about 500m from a medical centre, shopping centre and bus route. No common property, no communal ammenities.
There were quite popular 12 POMARINE DRIVE, Gwelup, WA 6018 - Property Details

 

That's the sort of thing I'm talking about. I'm years away from a development of that magnitude, but have the luxury of years to build up to it.

 

Some you can't buy as investment. I asked about buying one - then renting it out till I wanted to downsize. But the one I looked at would not allow it. It was owner occupiers only.

There is another similar here near me - it's not officially over 50s but that the majority of the people in it. I am seriously thinking about it as a rental - and a future place to live.

 

Yes this was part of my thinking too. I'm only a few years off turning 50. Not that I necessarily want to live there, but will be somewhere to stash my parents as they are struggling with a larger house and still have a mortgage in their non working late 60's.

 

I have the same thoughts. Get one for my parents in the shorter time - and I will live there longer term. Or get two - one for my parents and one for me. Since you are in BNE - the ones that I checked that doesn't let you rent them out is Gateway Lifestyle at 905 Manly Rd. It really is an over 50s place.

The ones that I am looking at now are just lowset villas - but LOTS of old people are in them. Check these..........
8/1 Belgarah Place Carina Qld 4152 - House for Sale #124060910 - realestate.com.au
http://www.realestate.com.au/property-villa-qld-carina-124299306
77/100 Meadowlands Road Carina Qld 4152 - Townhouse for Sale #124280638 - realestate.com.au
25 Belgarah Place Carina Qld 4152 - Unit for Sale #124070978 - realestate.com.au

The first one I love. The size and layout - the fact there is heaps of natural light and it's been renovated and well looked after. The lady selling is going into assisted care and has been there for ages. Cons on this one - Belgarth Pl is a bit of a walk to Meadowlands Rd - which is where the bus is to Carindale Westfield. Also the body corporate is higher and the estate isn't very green - just mostly paved.

The villas in 100 Meadowlands are really great. Really low body corporate (for an estate with pool, tennis court, and large green space), it has the bus just outside the estate, it is FULL of older people and most only leave to move to nursing homes. It's such a nice space. Con's on this one - the unit design is a little - little. Not as much natural light which is a big downer for me.

Others in the same area that are all low set villas with high appeal to older people include 128 Meadowlands Rd, and 30 Meadowlands Rd. Neither location currently have anything for sale.

If anyone knows of others similar to the above but near the Bay - Manly, Wynnum or Lota - I would love to hear about it.

 

I'm on the Sunshine Coast, which is retirement central. So there is plenty of choice up here. Looking at one at Wurtulla Beach for the parents. 2/1/1 walk to beach and shops, 320k. Going from a 290sqm house to a 2 bed unit is going to be a bit of a squeeze for them though.

 

There was an interesting article about this in Investsmart/Eureka/Intelligent Investor.

In a nutshell, a lot of people are thinking along the same lines, so watch out for over-supply.

 

On TV tonight they had a section on a RV park for over 50's. Each house has a huge garage to park and keep the RV for when they take off.

Home - RV Homebase Queensland Lifestyle Village

 

I cant get over why over 55s would want to retire into a double story home.

I could understand if they were lowest but if I was 65-70 I don't think we would want to be living in a double story home.

 

Hey @Big Will are you talking about the link I provided as that's a single storey house.

 

I did a google street view and there is a number on that road that are 2S.