Over 55s village plot - no strata

Advice on 55s village plot - no strata

I have been having a look at some of the properties on the market at the moment and I came across an over 55s block for sale. 4 townhouses, no strata titled.

Firstly - I'm not to informed on whether investing into retirement villages is a good idea. Seems like you limit your market and health issues can cause rental consistency. Your thoughts on this would be welcome.

Secondly - the fact that it's not strata titled. Is this an advantage for an investor? Why?

Thirdly - If you buy the plot, is it then possible to change the townhouses away from retirement / over 55s, and instead open it up to the rest of the market?
What sort of agreements are there generally with the managers of the complex?

In advance thanks for your help.
 
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What's the story with over 55's stuff anyway (sorry for the hijack, but related I think). What makes it Over 55's & why do they tend to sell more cheaply than other properties?
 
what's the issue with finance?

and if it's hard to finance, why do people build them?

Firstly - I'm not to informed on whether investing into retirement villages is a good idea. Seems like you limit your market and health issues can cause rental consistency. Your thoughts on this would be welcome.

Why would a bank want to take control of an assest that has limited demand.

Similar reason to serviced and student apartments.
 
Why would a bank want to take control of an assest that has limited demand.

Similar reason to serviced and student apartments.

I totally get that. And also, how are over 55's going to pay out a 20 year mortgage (if it's an owner occupy).

What I don't get is what is the motivation for building them. I understand complexes with various activities etc (though the thought of living there makes my skin crawl) But if it's a bog standard set of town houses, what makes it an over 55's apartment? And if the funding is hard adn you're limiting your market, why build it? I must be missing something, I've never been able to find an answer in my occasional search. Are there grants or something if you provide such housing?
 
OK,
So I understand that it's going to be harder to finance, and I guess I understand why but if I am able to change it from over 55, to 4 townhouses open to everyone then presumably the bank might be more receptive to the idea?
Does buying the plot give me that option?
Thanks.
 
OK,
So I understand that it's going to be harder to finance, and I guess I understand why but if I am able to change it from over 55, to 4 townhouses open to everyone then presumably the bank might be more receptive to the idea?
Does buying the plot give me that option?
Thanks.

typically, over 55s is zoned or under control of SEPP 5, and youd have no show

Been a long time since I have played with this stuff

more so, you dont have a separate title I understand, and if thats the case because finance is near impossible, the same would apply for any buyer,hence the product has a limited demand, and like say 5 units on one title can only be sold to a specific type of buyer

possibly worth investigating, but the forst thing to find out what planning controls are on the dirt

ta
rolf
 
To add to Rolf's post. I live adjacent to SEPP5's - it is not a zoning but a planning control and DA condition which allows multiple occupancy on a block which would otherwise be single dwelling houses. You need to meet several conditions including distance to shops, doctors, regular bus/train on 6 days/week.

There is a requirement for one unit to be accessible.

It appeals to a small sector of the market due to the over 55's restrictions but it doesn't need to provide all the facilities of a retirement village.

The ones located around me are all strata titled. Resales are generally over $1m for 3/4 bedrooms, lift, u/g parking.

Occupants are generally empty nesters but often have adult kids/grand kids in residence as well.

Due to the limited appeal, they do take longer to sell but the development of 3 had 2 sold prior to completion.

If you can pick it up and go through the strata subdivision you could make $$
 
Under WA law (and I'm assuming something similar for you guys) over 55s get a density bonus and therefore need less land to achieve a dwelling in a complex. So if its zoned xx and you need 300sqm of land for a normal dwelling, the over 55s only need 200sqm.

Due to this they are not easy to convert to non Over 55s.

If they are all on one title the bank will assess them as such and that is normally about 20% less than normal value. You would need to assess if they can be strata titled and the upsides of that - higher valuation, potential to sell etc
 
Assuming they are on one title is it liker Community Title, whereby you own a share?

What about land rates etc?

So assuming there were no strata fees wouldn't it be feasible to buy one of these when downsizing as opposed to a standard villa? Thinking, thinking!!
 
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