The best ownership model for a good retirement village is still the leased model. Here are many reasons why.
1. Integrity of concept.
A retirement village is created to cater for those above 55 years of age or whichever that is set by the owners/operators. This protects the sanctity of such properties. If the single resident chooses to marry a 40-year old somewhere down the road, the new spouse does not qualify to live in the property. The stakeholders can decide on this. Should they have an offspring, the integrity of the village disintegrates. Being a leased model, it is easy for them to dispose their lease and find new residence.
2. Evicting neighbours from hell.
The best years of our lives when we retire can turn out to be the worst should karma intervenes and present us with neighbours from hell. Again, the leased model allows for the operator or management committee to control the sanctity of the place. This is the same with shopping malls in Malaysia; valuable lessons learned - Berjaya Times Square, Summit Subang, Amcorp Mall, etc.
3. Legacy property business.
Being a leased model, the ownership of the land is perpetual to the landowner/developer party. With conventional development, whatever choice land is never yours again. However, you do need to build the retirement village facility first before you sell. TI Homes invested RM10 million just on the clubhouse (inset photo) alone in time for the official launch.
4. Ease of disposal of asset.
A few years back there, there was a retirement purposed property offered for outright sale by the coast in Selangor. It was a reasonably large project with many facilities and features. I have limited information but I do know that uptake was extremely low. Being larger units and a higher price tag makes it competitive with itself.
For an investment of RM2 million, it is likelyhood the intending buyer may be discouraged by the children to move overseas with them instead. The children may not want to inherit a RM2 million property thousands of miles away with a niched buyer profile. They would not likely be using this property as well, not for a long while. The asset will become liability. With the leased model, it is almost automatically resolved upon death or voluntary exit of the property.
NEXT: Who and why do people choose to live in a retirement village.
1. Integrity of concept.
A retirement village is created to cater for those above 55 years of age or whichever that is set by the owners/operators. This protects the sanctity of such properties. If the single resident chooses to marry a 40-year old somewhere down the road, the new spouse does not qualify to live in the property. The stakeholders can decide on this. Should they have an offspring, the integrity of the village disintegrates. Being a leased model, it is easy for them to dispose their lease and find new residence.
2. Evicting neighbours from hell.
The best years of our lives when we retire can turn out to be the worst should karma intervenes and present us with neighbours from hell. Again, the leased model allows for the operator or management committee to control the sanctity of the place. This is the same with shopping malls in Malaysia; valuable lessons learned - Berjaya Times Square, Summit Subang, Amcorp Mall, etc.
3. Legacy property business.
Being a leased model, the ownership of the land is perpetual to the landowner/developer party. With conventional development, whatever choice land is never yours again. However, you do need to build the retirement village facility first before you sell. TI Homes invested RM10 million just on the clubhouse (inset photo) alone in time for the official launch.
 |
| The RM10 million clubhouse at GreenAcres. |
4. Ease of disposal of asset.
A few years back there, there was a retirement purposed property offered for outright sale by the coast in Selangor. It was a reasonably large project with many facilities and features. I have limited information but I do know that uptake was extremely low. Being larger units and a higher price tag makes it competitive with itself.
For an investment of RM2 million, it is likelyhood the intending buyer may be discouraged by the children to move overseas with them instead. The children may not want to inherit a RM2 million property thousands of miles away with a niched buyer profile. They would not likely be using this property as well, not for a long while. The asset will become liability. With the leased model, it is almost automatically resolved upon death or voluntary exit of the property.
NEXT: Who and why do people choose to live in a retirement village.
No comments:
Post a Comment