Retirement communities in today's economy (move, state, housing, seniors)

[GreenGene]

There's an informative - and depressing - article in the Washington Post entitled You're Only As Secure As The Retirement Home.

Is your retirement secure? For some people who thought they had taken care of everything, the answer may be riding on another question: Is your retirement community secure?

The article includes descriptions of how the recession and the real estate crunch have affected various retirement communities, especially "continuing care retirement communities" or CCRCs.

[livecontent]

Originally Posted by GreenGene

There's an informative - and depressing - article in the Washington Post entitled You're Only As Secure As The Retirement Home.

Is your retirement secure? For some people who thought they had taken care of everything, the answer may be riding on another question: Is your retirement community secure?

The article includes descriptions of how the recession and the real estate crunch have affected various retirement communities, especially "continuing care retirement communities" or CCRCs.

Very good link. It has reconfirmed my suspicions about the Erickson Community Concept. Now that it it is in Bankruptcy, it should give prospective buyers some pause in the decision to invest into these retirement communities. There really is no protection of your assets in such an arrangement; there is no assured buyback of your residence.

People get so impressed by the glossy marketing and pretty properties and think that they are going to buy into "heaven". They forget that these are businesses out to make a profit, regardless of the consequences.

I would never buy into a retirement community. At that stage in life, I think it is better to rent with no long term commitment. If it does not work out, then you can move to another community. For eventually, your needs are definitely going to change and there is no guarantee that these continual care communities will satisfy you in the future.

Livecontent

[StealthRabbit]

Originally Posted by livecontent

Very good link. It has reconfirmed my suspicions about the Erickson Community Concept. ...

People get so impressed by the glossy marketing and pretty properties and think that they are going to buy into "heaven". They forget that these are businesses out to make a profit, regardless of the consequences....

And another reason why I am keen on Senior cooperatives (tho problems can exist as well). There have been no failures of operational HUD 213 props (To my knowledge) but a few developers who were doing the pre-sales (for profit) have had problems. This current housing market has given more credibility to the "Limited equity" Type of ownership that most senior cooperatives ascribe to. Senior Cooperative Foundation

A big problem at the moment is seniors who are stuck with their homes and need to be in a higher level of care, yet no method to fund, as all their equity is in their existing home, which is not selling in the near term. I expect there will be many more financial failures in this industry.

[texdav]

zFro what I have heard no more problems than other condo type situation. Those that own their homes are better offf than those in condo's as many go under from lack of occupancy with rent outs.

[thrillobyte]

An option might be to let bedroom-bath suite in your own home to individual/couple in exchange for them looking out for you, giving meds, cooking, etc depending your age and level of care needed.