Have you ever considered investing in senior housing?

By Greg Bell

Property investors tend to stick to what they know, whether that's mixed-use spaces, office buildings or industrial properties. We understand – you want a portfolio you know how to manage and feel confident will provide high returns. But what if we told you this strategy could be holding you back? 

By investing in a sphere that's in its infancy, you could get in on the action and reap the rewards long before anyone else catches on. Senior housing is one of these sectors, but it's also one you may have never considered before. Here's what you need to know.  

The case for investing in senior housing

What makes senior-friendly properties a budding investment opportunity? A number of factors are at play, including: 

1. Australia's ageing population

The number of seniors living Down Under is projected to double by 2057, according to the Australian Institute of Health and Welfare, presenting a major opportunity for commercial investors to meet demand with suitable real estate.

2. Increased real estate diversity

Once limited to large residential facilities, senior housing has undergone several changes in recent years. This is due not only to the number of Baby Boomers entering the market, but industry trends in favour of independent, autonomous living as well. 

Take NewDirection Care, for example, an aged care 'microtown' being built one-and-a-half hours north of the Gold Coast. A fully functioning village for independent seniors, NewDirection Care is evidence that investing in senior housing no longer means buying a nursing home or small hospital. 

3. A hands-off investment

There are far fewer 'landlord' duties when you invest in the aged care sector because the managing company oversees day-to-day operations of the home. This is different from other commercial spaces.

Plus, increasing demand means there will always be an influx of residents – making this investment even more hands-off. 

What you need to know about aged care property investing

As with any investment, it's important to consider potential drawbacks. 

Contracts and leases can be quite complicated, for example. While some will be run by private companies, others are purchased under leasehold arrangement. To avoid running into issues, it's essential to work with an expert who can help you understand the market. 

At Ray White Commercial Gold Coast, our agents and commercial property managers can help you weigh the pros and cons of a piece of real estate and get your head around the intricacies of emerging markets. Reach out today to find out more. 

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