Senior living investments have seen a steady growth in interest among investors and profit in the last couple of years. The “Seniors” are a rapidly growing sector of the population which will continually require some form of care and living arrangement that can specifically cater to their needs. This need for senior care facilities is estimated to have an explosive growth in the years to come and could prove to be a worthy investment. It is because of this that senior living investing is considered to be one of the better investments you can make right now.
Who Are The Seniors?
The Baby Boomers
The seniors come from the demographic called the Baby Boomers. These are individuals born between 1946 and 1964. This group was born right after World War II, during what is known as the “baby boom”.
It is estimated that there are over 75 million baby boomers in the United States alone born during that time period and that every day, 10,000 of these cohorts are turning 65. By the end of this decade, in 2029, all these baby boomers will be 65 years old and above making them 20 percent of the total population of the US.
The Under 60’s
Before, one must be at least 65 to be considered a senior as this is commonly the retirement age for adults. These days though, even those under 60 are now considered to be part of the senior age, with people who are 55 years old now making it as the youngest part of the group.
As this sector of the population increasingly ages, a great opportunity presents itself in senior living investments.
Why You Should Consider Senior Living Investments
If you are looking to start or expand your investment portfolio, should you consider senior living investments to be a part of it? Of course you should! There are several reasons why (*but we are not advising you here, only sharing our own information so check with your financial advisor).
There is Demand
One major reason to consider in senior living investing is demand. The demand for senior living facilities, services and communities is high. It is projected to keep increasing in the foreseeable future. This new decade alone will see a very high increase in its demand as more and more people move on to their senior years. And because of its high demand , the return on investment is pretty good. It has been steady at 13 percent on average even as the economy fluctuates.
Advancements in Life
The impact of advancements in medicine, healthcare and lifestyle changes have resulted in improved and longer life spans for seniors. This improvement in life means more people are living longer lives, well into their late senior years. This means more will be looking to avail the services of senior living facilities for a much longer time, which in turn, translates to higher profit for the investor. The good news is that despite the high demand, the number of investors in senior living communities and facilities is still quite low. This is a perfect opportunity to start in senior living investments. Simply put: there is high demand and relatively little competition.
Another thing to consider is time as these are considered to be long-term investments. Now it will take some time for your investment to grow, but when it does you can expect to continually reap its rewards for years to come. It can provide you with a good, sizable income, especially if you’ve chosen to diversify your senior living investments over a time.
Types of Senior Living Options
There are several types to choose from if you decide that senior living is the investment for you. These are Assisted Living, Independent Living, Nursing Homes and Continuing Care Retirement Communities (CCRC).
Assisted Living is a type of senior living community for seniors who might need some assistance and care in their day to day lives. Residents would often be roomed together in a home care-like setting.
Independent Living is a senior living community option for seniors who don’t usually require much assistance in their daily lives, living independently as neighbors in a community with fellow seniors.
Nursing Homes are somewhat similar to Assisted Living but differ in the amount of care it provides and its setting. Seniors who reside in nursing homes usually require round-the-clock medical care and are usually housed in a clinical facility.
Continuing Care Retirement Communities (CCRC) are senior living options where accommodations for assisted living, nursing home care and independent living are all available in one place. This type of living community offers seniors the convenience of being able to transfer to a different type of living arrangement should their needs change as they get older. The transition flows smoothly and easily as these are all housed in one property.
Another fairly new option to consider is Cohousing. It was introduced back in the early 1970’s in Denmark for families but since has been adapted for senior living. Cohousing is somewhat similar to Independent Living. The main difference is that cohousing is a form of communal living that integrates communal living areas with private residences. Seniors will have independent residences but share certain spaces such as a common house that may include a large kitchen and dining area, recreational spaces such as large gaming rooms, rec rooms and library. It may also feature shared outdoor spaces such as gardens, paths and outdoor recreational areas.
To Sum it All
Senior living investments could be a great way to build up your investment portfolio. It provides a service that everyone in the world eventually will need, making it a great opportunity for someone looking to invest and earn from a very lucrative business. Senior living options have diversified to more than just nursing homes. Several options have now been introduced with the goal of providing better choices and better care to address a senior’s particular need. By choosing the right senior living investment options, you can ride the explosive wave that senior living investing brings, and will bring in the years to come.
