has anyone brought any units in those 'over 55s' complexes? im still trying to figure out if it would be a sucessful purchase or not...dont old people buy their own retirement units?
has anyone brought any units in those 'over 55s' complexes? im still trying to figure out if it would be a sucessful purchase or not...dont old people buy their own retirement units?





^^^ not when the total cost of ownership exceeds the rental value !!!
The typical deal with 55+ people today is that their family has grown up and moved out, they have a big house that they no longer need, they start thinking of moving to an area with lower taxes and lower cost of living (in the US at least). So they sell the big house, bank the proceeds, and then determine whether it makes more sense to buy or to rent. Given current mortgage interest rates, a risk of declining real estate values in popular areas, rising property taxes, rising homeowners insurance costs, plus lots of developers and 'flippers' being desparate to rent out properties in order to slow down the cash flow bleed, many retirees now realize that they're better off renting until the real estate market shows positive signs of bottoming out.
The flip side of this is that would-be rental property investors will basically find themselves competing with the developers and 'flippers'. Even though they can probably buy the property this year at a lower price than the developers and 'flippers' sunk into similar properties last year, it's very doubtful that the 'going rate' for rentals will provide enough cash flow to turn a net profit after property taxes / insurance / mortgage payments / maintenance is taken into account.
Also, keep in mind the tax economics for retirees. I'm not sure how these things work in the land down under, but in the US the tax deductibility for mortgage payments is only as valuable as the amount of income the deduction can be taken against. In the case of retirees that can vary widely. In regard to eligibility for certain gov't benefits like medicare, owning valuable assets often times serves as a disadvantage (i.e. the gov't can seize these assets in exchange for providing particular services i.e. lifetime nursing home care). These issues complicate the picture far beyond the simple economics of renting vs buying.
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Last edited by Melonie; 04-13-2007 at 10:56 PM.
cool
i thought it might be a bit of a scam or something, might look into it more seriously now
thanks Melonie!!
Do you mean Medicaid? And the government won't seize your assets so you can qualify for nursing homes. They will simply require you to spend down all of your assets until you pass the means test. And there is a 5 year lookback.
Estate planning attorneys used to help seniors "Medicaid plan" by slowly sheltering their assets over time but that's gotten much harder as the government has clamped down on this abuse.
Some more info:http://ezinearticles.com/?Medicaid-N...Back&id=458804
Mermaid, I don't know much about Aus R.E. but I wouldn't touch it here.
"Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
"And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion
Originally Posted by Mia M





Yup, there you go. However, NY has recently tightened state laws in this regard to the point where a person can be sent to a nursing home upon the recommendation of a hospital board, at which point the deed is done and the person's assets can be seized to 'pay' for their treatment.Do you mean Medicaid? And the government won't seize your assets so you can qualify for nursing homes. They will simply require you to spend down all of your assets until you pass the means test. And there is a 5 year lookback.
Estate planning attorneys used to help seniors "Medicaid plan" by slowly sheltering their assets over time but that's gotten much harder as the government has clamped down on this abuse.
Hmmm....not in Texas. Although Rick Perry had a letter sent out to all residents over 60 telling them that if they are thinking of planning to use Medicaid assistance for their nursing care, they better forget about it, save more, and buy long-term care insurance. Tx is doing what it can to keep people off its dole. And no need for comments about illegal immigrants here please.
"Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
"And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion
Originally Posted by Mia M





My Grandma rents her place out . But I am pretty sure you gotta be 55 to purchase these places - not sure though .
Not to bring up TX again, but we have a property tax credit if homeowner's build a seperate house for the senior citizen on their property. I don't know if its in every county though. Its a pretty sweet deal if someone needs to take care of their aging parent and doesn't want or need to go the nursing home route. Our property taxes are ridiculous.
"Have you ever been to American wedding? Where is the vodka, where's marinated herring?" - GB
"And do the cats give a shit? No, they do not. Why? Because they're cats."-from The Onion
Originally Posted by Mia M
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