BUYING
HOUSE IN SENIOR’S PROJECT?
FACTOR
IN HEFTY MONTHLY CHARGES
Seek residents’ feedback as poor management could impact quality of life
and even resale value
A growing number of senior citizens are choosing to buy a house in real
estate projects that cater to their needs.
Growing demand, limited supply
One factor driving the demand for such homes is demography. India’s
elderly population is expected to reach over 20 percent of the population by
2050. Ashiana Housing points out that today’s affluent seniors present an
economic opportunity, and hence investments are flowing into projects
tailor-made from them. The Covid-19 pandemic, during which many senior citizens
without families struggled, has also intensified the demand for housing that
comes with specialised care.
Currently, there were only 62 senior living projects (developed or
ongoing) across the country. At least five new projects are under construction:
two in Bengaluru, and one each in Chennai, Kolkata and Coimbatore.
Promise of hassle-free living
These projects allow seniors to live independently. Daily chores like
food, dishwashing, laundry, etc. Are taken care of and service providers like
electricians, plumbers, etc. are easily available.
These projects and dwelling units are designed keeping in mind the needs
of seniors. They feature wheelchair-accessible layouts and are equipped with
several safety-enhancing elements. Access to healthcare is readily available.
Seniors get the company of peers belonging to the same age group. These
communities prioritise social engagement through activities, outings, and
communal events. These projects also come equipped with enhanced security
measures. Such housing could offer potential financial benefits. Given rising
demand, such properties could fetch and attractive resale value.
Premium pricing
The overall cost of such housing, depends on the type of facilities
offered, the level of care required by the inhabitants (independent or assisted
living), project location, grade of builder, and so on. Since they are equipped
with several services and facilities, they are priced at a premium compared to
standard homes. The price difference ranges from 10 to 30 per cent.
Be aware of restrictions
Many of these properties are located at the periphery of the city, which
could make access to relatives and friends, and even the city’s top hospitals,
difficult. There could be restrictions on the duration for which younger family
members can stay. Owners wanting to rent their houses will have to find a
tenant in the senior age bracket.
If the management quality deteriorates, the dwellers’ experience will
take a nosedive. Resale value could plummet if the society is not well
maintained. Since they can only be sold to other seniors, selling and exiting
would be more difficult than imagined.
On the owner’s demise, the property will pass on to the heirs. But they
may not be able to use it unless they are senior citizens.
Switching houses entails a cost. Selling one house and buying another
could mean a transaction cost of around 7 per cent.
Checks you should run
Before making a purchase doing through research, including feedback from
current residents, on the project’s reputation. Seniors must ensure the project
can cater to their changing needs. Once they enter the 70’s they may need
assisted living facilities. They should check whether the project provides such
facilities. Sodi advises doing a deep dive into the medical facilities,
equipment and critical services available within the campus. Understanding the
terms and conditions of the society’s by law before making a commitment.
Potential buyers must evaluate the monthly maintenance fees and service
charges, which can be hefty. Seniors should, if possible, live in such a
community on rent before making a commitment. This move should not deplete
their retirement corpus to dangerously low levels.
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