Is a 55+ Home a Good Investment?
August 13, 2021
Generally speaking, all real estate is a good investment, and this is especially true of 55+ homes.
Supply and Demand of 55+ Communities
55+ Communities are only a small segment of the Real Estate market with an ever-increasing (aging) demographic population looking to purchase in and enjoy the Active Adult Lifestyle. The law of supply and demand is in favor of increasing prices for 55+ Communities.
When you are among the first to buy in that community, new construction communities typically offer the best chance for faster value increases. This is especially true when you buy before the amenities are completed. Builders typically offer pre-construction prices.
Less Ups and Downs
Buyers in 55+ communities are relatively immune from the typical ups and down cycles that the general economy endures. The 55+ buyer is usually in a fixed income scenario either in the form of social security, pensions, or a combination of both. Of course, investment portfolios typically track the economy as a rule.
Renting in a 55+ Community
Lastly, many retirees want to rent in a 55+ community before buying to experience the area and lifestyle, especially if they are new to Active Adult Living. Still, others who are building a home in a community may want to rent in the community while waiting for their home to be built, thus getting involved in the social scene they will soon enjoy as residents. While rental rules vary from community to community, most allow rentals, to some extent. The one consistent rule is if rentals are allowed the same 55+ age restrictions apply to renters that apply to residents. If you plan to purchase and rent out your home, know your community’s rules before you purchase.
Your 55+ community specialist can help you find the home and community with the most favorable rental restrictions.
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