Why Senior Housing is Good for Your Portfolio
Senior housing really does have a lot to offer. The senior population is set to explode and the senior housing sector in general is bouncing back nicely after the pandemic. If you want to make a solid property investment, then it would be a mistake to overlook senior housing. America is home to over 46 million Americans who are over the age of 65. By the year 2050, that number could well reach over 90 million. If you are an investor then this is a huge movement that you can capitalize on, if you act now.
What is Senior Housing?
Senior living can include everything from independent living communities to assisted living facilities and more. It’s a huge spectrum and this offers a lot of options to senior housing investors. If you want to start investing in senior housing then as a general rule, you will be providing housing to those who are aged between 55 and 65. Real estate investments for this age range are booming, due to independent living apartment communities being so popular, with the real estate investment trust.
A lot of senior living facility buildings contain different perks which help to make life a little bit easier for residents. This could include laundry or even housekeeping services. Want to find out more about this real estate asset class or senior living facilities? Keep on reading.
What Can Senior Housing and Assisted Living Facilities Offer?
In some instances, the apartments are designed to offer support to those who may have limited mobility. A lot of seniors have a fixed income and this means that seniors are often looking for homes that cost less than their previous property.
A lot of seniors come from bigger homes that are too big for them now. They also don’t want to be responsible for all of the yard work and property upkeep that was once required of them.
For those who are generally concerned about the well-being of a senior family member, it’s safe to say that the benefits can extend beyond just practicality.
Studies have shown that the positive impact of senior housing can include helping people to stay active, well into their golden years.Communities often have a lot of amenities which help to draw people together as well. A lot of them employ activity planners who schedule games, events, concerts and other activities.
So, as you can see, investing in senior housing is always a good thing, because people want the best for their relatives.
Understanding your target market is essential when it comes to senior living properties too. If you can do this, then you’ll be able to make the best senior housing investments, while also having the option to expand and diversify your investment portfolio.
Why Senior Housing Investments are Essential for Your Portfolio
If you have never made any senior living real estate investments, you may be wondering if they are right for you, or how you can make the most of such an investment opportunity. Take a look below to find out more about senior living and how you could benefit from investing in it.
The main thing that you need to remember when making a senior housing investment is that you will need patience. That being said, the returns are very high. Historically, you can expect a return of 12-13% every year, even during times of economic upheaval.
This is a good measure to see how the senior housing market could fare throughout future challenges.
Interest is High
When retirees age, they usually end up looking for options that extend beyond nursing homes.
If you look at senior living communities, you will soon see that they are a very attractive option, and they are primarily used to capture a growing market of people who want to continue living independently. Experts have estimated that by the year 2029, seniors will make up one-fifth of the general population and that over the next 20 years, six million will be searching for senior housing.
It’s Possible to Scale
It is so important to remember that as the senior population grows, so does the senior market. You can also scale your business alongside your investment. When you see the market dictate, you can then go ahead and build other branch locations.
Senior housing in general gives you the chance to achieve a strategic objective when it comes to portfolio diversification. There is a huge range of equity and fixed-income opportunities out there, and this gives you the chance to diversify according to your needs.
Senior housing is really not a traditional asset class. It should be classed as an alternative asset. Equity and debt investments when applied to senior housing can give returns that do not correlate to the traditional asset class.
This means that you can reduce your overall risk or volatility while also making sure that your portfolio performance is improved. One reason why senior housing is so steady is because of the historical growth rate. Rental rates have increased for the last couple of decades, meaning that it is a solid and safe investment for any investor.
A Solid Investment
So, as you can see, senior housing is a solid investment, and if you have not considered it yet, then now is the time for you to make a change.
By adding senior housing to your portfolio, you can be sure to diversify your portfolio while also gaining a lot of asset exposure. You may also find that you can rocket the amount of profit potential you have on a yearly basis, due to the rise of seniors in America.
All of these points are very positive, the economic growth factors are there, and this all helps to indicate that now is a better time than ever for you to take the plunge into senior housing.
Want to find out more? Contact us at Rockford Construction.