Real estate, Retirement

Fundamentals of Investing in a Retirement Community

real estate investingThe remarkable statesman, John Lubbock has rightly said, "Rest is not idleness, and to lie sometimes on the grass under trees on a summer’s day, listening to the murmur of the water, or watching the clouds float across the sky, is by no means a waste of time." For all American citizens above the age of 55, the term ‘Retirement' holds a distinct meaning in comparison to others. For a person on the lookout, finding the perfect retirement abode is no less than discovering the lost city of El Dorado.

According to The National Association of Realtors, the overall housing reserve has witnessed a convincing increase in the past two years. It wouldn't be wrong to say that this business is undeniably a seller's playground. When you set yourself on this track, you will find yourself face-to-face with a plethora of options and choices. The alternatives are a foolproof mix of the good, the bad, and the ugly. It is completely your prerogative of what alternative you select based on your specific requirements.

So, whether you are the retiree on the quest or the earnest child searching for your parent's suitable Retirement community, here are some fundamental questions that you should ask yourself:

How much am I willing to pay as ‘Total Cost?'

The initial cost of your new home is simply a part of the bigger picture. Once under your ownership, there exist possibilities of further costs incurred through special fees, additional amenities (golf, tennis, etc.) and future upgradation and repairs. It is good to enquire from your prospective neighbors regarding such activities and their related costs. You could also check their audited financial statements; it will throw some light on their current and future financial stability.

Do I want to be part of a strict ‘House of Rules'?

Retirement communities come with their unique set of rules and regulations, sometimes including the silliest things you could’ve ever imagined. Retirement communities are also age-restrictive in nature. If you're used to living with a younger crowd, these places could make you feel out-of-place. It is good to research carefully their rules regarding guest visits, especially if your visitors fall under the ‘below 55 years category.' Besides the age bar, also research their policies detailing the proper conduct code for members of the community.

Should I look for the warm sun or the cool breeze?

The climatic condition of your selected location is critical to your satisfaction from your new home. The retirement homes in the sunny city of Douglasville,GA is a top-hit with many retirees.

Does the Retirement community fulfill my healthcare needs?

A good Retirement community must be well equipped with a sound in-house medical emergency infrastructure. They must be located within convenient distance from the nearby reputed hospital or medical center.

How will I finance my Retirement home?

It is important to consider your purchase options before making the final decision. You must carefully weigh your tax and revenue scale before arriving at your final mode of payment. In case you're funding your new home out of the price of an old one's sale; you should only use a part of it for the purchase. A further check with your tax advisor regarding part purchase through a tax-deductible mortgage is a good option too.

You should consider the local tax rates applicable to property purchases in the new area. The profitable period for such purchase is when the regional high season is coming to a halt.

How long is the Approval period?

The final sanction of ownership might take longer than you'd want it to be. You could confer with the residents and your agent regarding the waiting period and other necessities involved.

How elaborate is the Membership and Activity catalog?

Many communities demand a compulsory ‘Equity Membership', annual dues, etc.; it is crucial to investigate regarding similar membership requirements before taking any decision. Also consider the various options offered for recreation. After all, there is no excuse to not indulge yourself in your favorite activity in your free days!

How should my new neighbors and caretakers be?

Retirement community means loads of free time, new friends, and more social interaction. You could review your options better in light of the disposition of your intended community and neighbors. It is equally important to research regarding the how and who of your home-maintenance in your absence. Look for a community that has convenient options for security and maintenance of your place when you can't be around.

Finding your retirement paradise is no child's play. There are innumerable factors that need to be considered. Therefore, it is crucial to plan, plan and plan some more when it comes to making such imperative decisions.

Shared by

If you have any questions, please ask below!