In the career of a professional, there inevitably comes a time when they must step away from their workplace responsibilities. Approximately twenty-five years ago, as individuals approached retirement, many contemplated the prospect of securing their own residence. However, the landscape shifted at the dawn of the 21st century. The introduction of affordable home loan options enabled individuals in their 30s and 40s to not only envision homeownership but to realize it as well.
Over the years, real estate has increasingly been recognized as a sound investment opportunity. Investors began to investigate tier-two and tier-three cities, as well as locations known for tourism, education, and religious significance. During this period, the idea of investing in ‘retirement homes’ gained traction. But what precisely constitutes a retirement home, and what are its characteristics and investment potential? Let us explore this further.
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What is a Retirement Home?
In recent times, the term “senior living community” is often used for retirement homes. “Simply put, retirement homes are housing projects consisting of homes designed and developed specifically for senior citizens. These projects are similar to regular apartment or residential projects but with a focus on the needs of the elderly. Common areas feature ramps instead of stairs, ample lighting, and communal seating areas for gatherings. In addition, special care is taken to provide nursing and medical facilities,” informs Pradeep Mishra, CMD, ORAM Developments.
Such homes typically have an age requirement for residency. For instance, in some retirement homes, you can invest at the age of 40 or 50, but you can only use the property once you reach 60 or older. Now, you might wonder, will the property remain vacant during that time? The answer is no. Developers of these properties usually rent them out to others in the same age group, allowing you to earn a monthly income like any other property. When you reach retirement age, you can choose to use the property as you wish.
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