29 Jan 2018

Pensioner Accommodation for an Ageing Population

With our ageing population, the demand for retirement accommodation, aged living facilities, aged living communities, retirement villages and nursing homes is increasing rapidly.

A great percentage of these types of facilities are designed for the rental market rather than the owner occupied. This enables retirees to use their savings to generate additional income to live on, instead of tying up capital in retirement living ownership.

For the investor, this has created an opportunity to invest in the aged rental property market where:

  • Returns are high
  • Properties are well maintained
  • Rental payments are usually paid by direct debit from the aged pension.

So, non-payment of rent is unlikely to ever be a problem. Quite often, this type of rental accommodation is built in the duplex style, which means the average income return to an investor could be  in the range of 8% to 12%.

                 There is a down-side

The downside of investing in this market is that the re-sale market is restricted to other investors and the growth on this type of property is quite often less than that of normal residential real estate in the surrounding areas.

We always recommend that you seek professional advice as this blog is for general information only