What are thoughts, experiences and opinions in purchasing retirement village/ over 55 community properties as investments? Initial investigations show: Pros Positive/high cash flow Higher yield Low entry cost Generally less maintenance and wear and tear long-term stable tenancy Cons Limited re-sale market Pigeon-holed into specific rental market Careful consideration to body corporate costs Strata Vs leasehold arrangements of ownership Rental growth some-what limited (Or has the potential to be due to welfare dependency) Appreciate any experiences, thoughts or opinions in investing in these. Thanks!
Had no experience myself in this area. Personally I would not touch them mostly due to your con list. I would not want to limit myself to only 1 demographic for renting and selling. One of the best benefits with direct property is control so I would not want to limit this option. Same goes for NRAS, defence housing, student accommodation etc.
Unlike strata it is leasehold. The lessor may prevent you from subletting the property. You may also have to pay for any refurbishment cost out of your sales proceeds, restricted with choice of selling agents and more.
