Are 55+ communities a good investment? (cash, property, owners, financial)

[margaretBartle]

I'm looking at selling my condo, and using the equity to pay cash for a modest co-op in the lower-cost town where my daughter lives. I've found a nice unit in a 55+ community that i like.



She wants to give me the money to buy a significantly better condo, and be on the deed. As my sole heir, she will get everything, so she considers it an investment, and is able and willing to do it.

Part of her logic is that she would have a more difficult time selling a coop in a 55+ community, since she would not be able to live there, she would have to sell it, and also that co-ops don't sell as well as condos.



There are some other important considerations we would have to talk over. I'm not in a big hurry - but this one point was the first thing she brought up, and I was wondering if it was true.


If these modest co-op units were condos and not in a 55+ community, would that, by itself, make a difference in the selling price?



These units move pretty fast. Last year, when I was starting to look at places in her town, they were moving in a matter or days.

[adjusterjack]

She wants to give me the money to buy a significantly better condo, and be on the deed.

There are a number of reasons for that not being a good idea for her or for you.

https://www.atlaslawoffice.com/5-rea...-on-your-deed/

If you are buying in WA state you can serve the same purpose with a real property transfer on death deed without the risks.

https://app.leg.wa.gov/rcw/default.a...4.80&full=true

As for any other considerations, pick what pleases you and forget about how and how much it would sell for when you are dead.

[Chas863]

AdjusterJack gave you good advice. Personally, I don't think that "co-ops" would be my thing. I would favor a condo where I have a deed to the property. Just check out the financial situation of the condo association before buying there. You want to make sure that it is being well run/managed and that they have adequate reserves and don't have to assess the unit owners every time that something needs to be done.

[margaretBartle]

Originally Posted by adjusterjack

If you are buying in WA state you can serve the same purpose with a real property transfer on death deed without the risks.
https://app.leg.wa.gov/rcw/default.a...4.80&full=true.

Very useful - I had not heard of this.

Thanks!

[rational1]

Depends a great deal on exactly what OP wants.

If she prefers to live in a 55+ and can afford it that's what she should do.

If daughter wants to own real estate that might appreciate she should buy her own.