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.