In India retirement living has been an extension of Real Estate. Elder care is still in its infancy stages, as far as retirement living is concerned. Very few players have provided value to this space. Most builders build communities, and then they sell it at a premium value with a promise of care. How many of them have an experience in this ? How many are passionate about this ? Probably a handful. Few have pioneered, persisted and provided a different living experience. Presently, anyone can buy a retirement living unit, but there is an age based entry restriction to live in these properties. One cannot lease or rent at his will, but can do so only through the association. And this is good, as some filtering will happen through a screening process and only discerning will be able to come into these properties.
But as the concept evolves, in a period of time we will reach a stage, in India, where sale as a model will move out completely to provide for lease. For eg., At 65 years of age why will one sink in close to Rs.50 lakhs to buy into a community without testing ? With a 20 years life expectancy, probably the person is more comfortable to leasing the accommodation. Risks are there in terms of continuity, but then it overweighs the need for a person to buy a living. With more individual families , children living separately or out of the country, one does not want to be saddled with property and the problems of transfer of ownership, which is a relatively cumbersome process , especially when you live overseas . So Lease is a better option in terms of realizing the investment at time of vacation.
With cost of medical needs, travel and more importantly property maintenance related issues, leasing seems the way Indian retirement living will shape to…. At least from a user perspective.
So decide. Will you lease, rent or buy a retirement dwelling ?
