New Real Estate Investment Segment – Retirement Homes (A Complete Guide)
We all work hard to have a comfortable and financially secured future. This has become absolutely important to think, in present times where everybody wants to live leisurely and independently.
Senior citizens are now discovering the joys of retirement in second homes also called as Retirement Homes that offer several comforts and facilities, required at that age.
Earlier, Retirement Homes - a foreign concept, was looked upon with disdain but with time, this concept is gaining greater acceptance in India, too. The reason is obvious, small families, children working in distant places or living away from parents.
Children of elderly alone parents, look for safer living locations for their parents, where all daily needs, specific amenities (old age related) and basic medical care are perfectly taken care of.
Indian Market for Senior Citizen Homes
According to JLL analysis, there are 135 towns and urban cities in India, with a total of 52 million households, there exists a total of 12.8 million households with senior citizens. Presently, there is a large gap between potential customers and customers who are aware of their requirement.
Although there is a nationwide requirement for senior citizen housing projects, south India seems to be the largest market. Among all states, Tamil Nadu has the largest percentage of senior citizens with high per capita income.
Major realty developers are providing completely secured and quality retirement residential properties, farther from noisy urban cities to give a quiet and serene atmosphere to old age people. Cities like Hyderabad, Bengaluru, Chennai, Kanchipuram are popular locations for retirement housing in south India.
Investment in Retirement Homes can be
• For self-use
• Purely as a retirement home.
A post-retirement second home is no longer ‘just a nice place to live’, but it place where same age group people can lead their quality lives – respectfully without depending on others.
Guide for Retirement Homes Investment
The best age to start investing in retirement homes in India is between 45 and 55 or couples should buy such type of second homes 10 to 15 years before their retirement.
Before investing to buy a retirement home, one should take due care about such type of properties. We have listed the things you need to know:
Location of the property
The retirement homes or senior citizen residential properties are usually located on the outskirts of the cities or in remote locations. As land developers get cheaper land there, they build vast tracts of land necessary for such projects.
Such areas are quiet, peaceful, an abundance of sunlight, have a pollution-free environment with lush green vast areas. They give complete resort like feeling to the occupants. However one has to make sure that the place is well connected to the city by good roads and have reliable public transport facility.
The project should have good accessibility from the airport, railway station, bus station and availability of medical services. This enables you to travel to the city easily, whenever required and also your relatives can easily visit you. The project should be situated within a few kilometer ranges of the hospital in case of medical emergencies.
Amenities and Maintenance Cost
The amenities required for senior citizen housing or retirement homes is different from other target age groups.
Senior citizen housing property buyers today want comfortable and fully-facilitated homes, which amplify their quality of life after retirement.
These residential projects should be self-sustaining so that the residents do not have to venture out of the locality for basic services. You must consider maintenance charges, security charges, nursing & healthcare facilities, clean water supply, food/canteen, laundry service, landscaped gardens, leisure activity areas and other amenities necessary for senior citizens before finalizing the deal.
Life after retirement is meant to be enjoyable, so senior age people expect to find avenues of entertainment and relaxation within the housing project premises.
There are several financial assistance provided to buy residential properties now. Various schemes are provided by banks for easy loan payment options. Also, you can sell your old home to fund a new retirement home purchase.
You become more asset rich with two residential properties. Keeping the original old house offers the flexibility of returning back if you do not like to live in the retirement homes. You need to keep a balance in immovable and liquid assets to meet your day-to-day expenses.
The retirement home or housing projects for senior citizens is a relatively new segment in the Indian real estate property market and an investment can earn owners handsome returns. It is a growing trend now as more people want to spend their sunset years in homes that amplify their quality of life.