Retirement marks a new phase of life for most people. Investing in a senior living home may be a wise choice for such individuals as these are communities designed specifically to meet the needs of the elderly. Indian real estate market is witnessing the growth of senior living communities that also come with assisted living facilities, providing a secure and comfortable life for older people.
However, before you invest in a senior living project for yourself or your elderly parents, it is important to weigh certain factors that can help you make an informed decision.
Affordability
The first question you must ask yourself is whether you can afford this investment. The cost of senior living homes is typically on the higher side. Besides, there may be high cost of living and maintenance charges you would have to meet.
So, if a project offers a range of amenities, including in-house doctor and medical facilities, canteen, activities, housekeeping, concierge services, etc., be ready for the high expenses. The cost of properties in retirement home projects may start at Rs 45 lakh. Consider moving into a senior living project if you have adequate funds.
Right time to invest
It may be ideal to buy a senior living home when you are approaching your retirement. Consider staying in the apartment on rent for a year or so. This will help you decide whether or not the investment would be favourable for you.
Type of senior living project
Senior living projects are mainly classified into independent living and assisted living. Independent living projects are designed for senior citizens who lead an active lifestyle. On the other hand, assisted living projects cater to people who are not very active. Thus, these projects offer personalised care and assistance with daily activities. Essentially, one must evaluate their lifestyle and healthcare needs before investing in a senior home.
Buying or renting
Investing in a premium senior living project can be quite expensive. Thus, many people prefer renting in such projects as a suitable option. One does not have to sell their present property. Renting also gives them the freedom to move if they do not find the services satisfactory.
Location
Many senior living communities have come up in several tier 1 and tier 2 cities. These include Chennai, Bangalore, Kolkata, Coimbatore, Pune, etc. The cost of living differs in these cities. In addition to the location of such projects, one must take factors such as lifestyle and access to social infrastructure into account.
Age limit, restrictions and guidelines
Some developers fix a certain age limit for the occupants opting for retirement homes. Similarly, there may also be certain restrictions on visits from family, relatives or friends, in a year. These guidelines may vary based on the specific project.
Retirement homes must be governed by the relevant state RERA. The sale of housing units are allowed only if the project is registered under RERA.
Payment
A retirement home can be bought outright by anyone below the age of 50. Those above the age of 55 are allowed to reside in these homes. If required, the residence might be sold or given to heirs.
Under the deposit concept, the occupant does not own the house and resides only for a Fixed period. Thus, he would have to pay only 60-80 percent of the property cost. Specific charges are deducted from the deposits returned at the time of leaving the property.
Retirement homes can also be rented. A specific amount as deposits must be paid and part of is non-refundable.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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