Buying a retirement home- Investment Vs End use
About 41.5% of the population of India is ruled by youngsters, which means, after a couple of decades, India can expect more senior citizens. Also, the increasing number of senior citizens with adequate finances has been on the upswing. The evolution of India’s real estate segment along with the increasing need for senior citizen homes has made the retirement home segment quite popular among the buyers as well as the developers.
There is no denying the fact that many people across India wish to invest in retirement homes, especially to maintain a community living with luxuries and facilities like doctor on call during their retirement. But the supply is not up to the demand. So is it worth investing in a retirement home during or before the sunset stage of one’s life? Are retirement homes more for end usage or can double up as an investment vehicle? Lets review.
While the dilemma between end usage and investment vehicle is a genuine one, most industry experts believe that retirement homes are for living as an end use product. For investment purposes there are a lot of real estate options that one can consider. But retirement homes must be bought keeping in mind the usability of the house. The focus while buying a retirement home must be centered on the benefits one can derive from staying it rather than any financial increments.
The retirement home segment is still in its nascent stages in India. There are few retirement home options blooming in the Indian real estate market. From independent living houses to dedicated senior citizen communities, assisted living houses and nursing care centers all come under the umbrella of retirement homes.
The rising demand has made it possible for many developers to start focusing on the segment. If the demand remains consistent over a period of time, any investment made in retirement homes today is going to provide adequate returns. On the flip side if the supply increases the demand, there may not be much of a positive spike in the sector.
It is best to think of retirement home as a living luxury rather than an investment product. Most Indians like to leave their property to their near and dear ones. The downside of gifting such a retirement home to immediate relatives is that they can only use the property once they are of a minimum age criteria. But then on the positive side, they can use the retirement home for themselves in their old age or even rent it out while they are not using it.
The bottom line is that retirement home segment is slowly but surely picking up steam but it is purely an end use product. Any increment in real estate property which is likely to happen with time is an added advantage. Retirement homes must be seen and bought considering the facilities and amenities provided by them including access to medical care and ample security rather than any financial overtones.
