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retirement villages

Discussion in 'Property Experts' started by ozdrjohn, 12th Feb, 2016.

  1. ozdrjohn

    ozdrjohn Member

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    12th Feb, 2016
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    Location:
    nsw
    hi everyone - am a newbie to this site so please be kind if im in the wrong place. looked at what a appeared today to be a standard strata building in qld, except it was more like, well basically was, a retirement village. all looked good, however i am uncertain about how to do the due diligence on such a property. any guidance welcome as im sure this could have traps for young players everywhere. am not new to landlording with 10+yrs experience, but this is such a different proposition - esp with any regs relating to the elderly. any wisdom greatly appreciated. ta, john
     
  2. euro73

    euro73 Well-Known Member Business Member

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    Over 55's? Are you wanting to purchase one, all?
     
  3. Azazel

    Azazel Well-Known Member

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    Hey John, good on you for having a look at something different.
    There are reasons people don't go for them, mostly can be difficult to sell or weird clauses around selling I think.
     
  4. Hodor

    Hodor Well-Known Member

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    There is a long thread on these types of purchases back on the old SS forums (not sure where exactly, think it was about buying one near Albury). All those clauses reduce your potential target market and limit CG and cashflow is also reduced as they tend to have higher costs.

    Not sure how the banks look at such things, I seem to remember max LVR was also reduced, this maybe the type of development or just they are often of very small.

    Only upside I can see is that someone who is 55 would be looking to stay and rent in the one place for as long as they can.
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Check carefully.

    Some will only sell to the right age demographic.

    Some disallow or limit rentals.
    Marg
     
  6. chindonly

    chindonly Well-Known Member

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    If you are keen to look at retirement living, also have a look at 'relocatable homes'.
    They sit under a separate act, and residents can still get rental assistance.
    Some very interesting models around ranging from low 200k to over 700k. per dwelling.
    There are some groups around buying up caravan parks and converting them.