Expand A Real Estate Portfolio With Senior Housing Fund Investments

Investors tap into the option of senior housing when looking to expand their real estate portfolios. Thanks to the “Baby Boomer” population, there is a growing demand for housing in these age ranges. 

The census indicates roughly “10,000 Boomers transition into the 65-year milestone each day.” They further suggest that the population of retirees has reached approximately “70 million and will comprise nearly 20% of the population by 2030.”

Based on these results, the suggestion is that the senior housing market will likely be incredibly profitable throughout this next decade. That makes the investment in senior house funds wise, especially for those starting early to build wealth towards a retirement portfolio. Let’s look at some of the specific reasons investing this way just makes sense. 

Why Should Investors Consider Senior Housing Funds For Their Real Estate Portfolio

The “Baby Boomer” population comprises a significant portion of the people to the point roughly 20% of the population will be Boomers by the year 2030. In saying that, there will be a need for adequate housing for these seniors, making the senior housing market a very lucrative prospect in numerous ways.

One is for investors who want to expand their real estate portfolio. For those who start investing early for retirement, it’s very possible to establish an excellent foundation for your future when including senior housing funds as part of your assets. 

What are some specific reasons that make this particular investment among the top choices for those who dabble in real estate? Find out if these are a good investment and why at https://retiringpro.com/are-retirement-communities-a-good-investment/ and then look at these:

  • Minimal competition

Most investors will notice that the prominent or seasoned investors are paying minimal attention to the senior housing market despite the fact it’s currently a “hot market.” 

Many of the “pros,” if you will, are looking in areas with job prospects for the younger generation. Most are looking for potential buyers and tenants with career aspirations carrying good income and an excellent credit score.

For investors in senior housing, not only will there be fewer of them, but they can rely on the fact there will be a specific community of people looking to buy and rent the housing. These can be depended on usually for the long-term, creating a stable investment prospect.

  • The possibility for incredible gains

The suggestion, according to “NCREIF” or “National Council of Real Estate Investment Fiduciaries,” is that the return on a senior housing investment can be exceptionally lucrative. The organization reveals that this investment has the potential for gains consistently ranging around “13%.”

It’s curious, though, if that’s affected by the market since real estate does correlate (obviously) with the financial markets. In saying that, when the markets are rocky, real estate will suffer the consequences, as would a portfolio carrying these investments. 

However, looking at the “Baby Boomers,” this generation is ahead of the game. These people likely started saving for retirement early, so they’re probably not a “poor” generation. 

That means even if the market suffers or inflation increases, it won’t affect Boomers from obtaining housing. The only thing it might affect is, maybe, whether they choose to buy or rent. 

So, will the senior housing fund thrive even when the overall market is in crisis? Perhaps. That makes the investment that much more valuable.

  • “Higher occupancy rates” and “cash flow properties”

When seniors decide to sell the homes they raised their families in and downsize for retirement; this population usually remains in one place after they decide on a location to enjoy their retirement. 

Life expectancies are growing exceptionally later than ever before. That means when someone chooses to rent or buy their retirement home, they could live there for a significant period of time. That can be a lucrative prospect for the investor.

Because there is a more significant number of “Baby Boomers,” there’s a demand for senior housing with more communities developing and assisted living facilities establishing. All of these are becoming full quickly. 

Within the next decade, the market will be challenged to have adequate housing for the anticipated population when the Boomers all grow into their retirement ages. Click for details on why senior housing is among the best real estate investment opportunities.

Final Thought

Senior housing funds are a component of real estate investing that is likely not being looked at by the seasoned pros in the investment game. There won’t be much competition in the arena, with many prominent investors choosing to go after the young, career-driven entrepreneurs. 

But they’re failing to recognize that over the next decade, the population will be “overrun” with retirees looking for housing. That will be exceptionally lucrative for the investor with a keen eye for a good thing when they see it.