A retirement community is somewhere seniors can relax and enjoy their golden years but it can also be an investment opportunity.
When owners buy properties to invest it usually means renovating the house and putting it back on the market for a higher amount (aka flipping). This is a good strategy for buying cheap fixer-uppers and giving them a facelift to make some money. Since Sun City is a new development, you won’t make much money from flipping.
Communities that feature single-family homes offer an easier investment opportunity through renting. If you are planning on being a snowbird during retirement, figure out when you would like to stay in your house and then rent it out the rest of the year. You can also buy the house and rent it out all year if you don’t want to move. Both options will help you cover the cost of the house while earning ROI.
Renting at Sun City is available but there are some rules. Leases need to be for a minimum of six months and can only last for eight months before needing to be renewed.
A benefit of investing in these developments is that it’s not hard to find interested people. These places tend to be in areas with nice weather and have desirable activities nearby. Sun City is about 20 minutes from Austin which means it gets sun almost all year long and the winters tend to be mild. And being close to Austin also means that residents can enjoy the sights of the city before heading back home to relax. The development also has its own amenities for those who don’t want to travel; there is a fitness center with pools and lots of events during the year. This will appeal to fellow snowbirds looking to escape the cold and stay busy all year.
Another benefit is that the baby boomer generation will be heading into retirement and looking for retirement homes, which means more potential renters. Many will want to choose living in an active adult community because they can be independent in their own home and be surrounded by their peers.
These developments also offer smaller homes that are easier to maintain. Yard care isn’t provided but there is a Landscape Maintained Homes program available for specific neighborhoods.
The risks of renting tend to go down when renting to older people because they are less likely to cause serious damage to the property and might stay longer. This means you have to do fewer repairs and won’t be changing out tenants as often. However, you also have to remember that renters with declining health might not be able to continue leasing.
Choosing to invest in a senior community is an easy way to make additional income during retirement. It will help diversify your investment portfolio which will help you make financial decisions in the future. And since the population of retirees is growing you are guaranteed a stable source of renters. If you are interested in renting out a property, talk to a Rugg Realty agent today.