Selecting an Active Retirement Community
We hear a lot about assisted living communities these days because it's among the fastest-growing segments of the housing industry. Assisted living offers the best of all possible worlds for seniors: independence that comes with their own residential accommodations, along with the availability of health care and support services tailored to meet individual needs of those who do not require full-time medical care.
Active retirement communities, also called senior apartment, are gaining in popularity, as well. These communities are much like any apartment community you'll find in the United States, except that they have age requirements for residency, and they strive to provide seniors with social and recreational opportunities with others who are similar in age. The theory makes a lot of sense. Seniors, particularly widows and widowers, are sometimes lonely. The closest family members they have may be hundreds or even thousands of miles away. Their family members may have extended the invitation to have their relative live with them, but many senior want to maintain their independence and their pride. It's a bit of a double-edged sword, but active retirement communities address those concerns in fine style.
Active retirement communities are either "age inclusive" or "age exclusive". Age inclusive communities are designed for retirees of all ages, although more senior-age residents tend to settle in such communities. Age exclusive communities require that their residents be senior citizens--in other words, ages 55 and older.
Most active retirement communities provide such amenities as tennis courts, fitness centers, golf courses, swimming pools and spas, a clubhouse for large gatherings, and a library. And while such communities strongly recognize the ability of their residents to be independent, they also tend to provide tenants with easy access to local transportation, laundry facilities, meals and regularly
planned social activities. Rather than compromising their independence, seniors enjoy convenience.
Before you select the active retirement community that's right for you, create a checklist to carry with you on your search (and make sure you visit multiple communities, which can be vastly different in their approaches, price ranges and available amenities).You'll also want to ask whether the below-listed amenities are included with your rent and/or required fees, or if you're charged additional fees for the privilege of using these services:
Does the community offer additional storage for its residents?
What are the parking accommodations -- open parking, a garage or covered parking?
Are your utilities covered in your rent, and which ones? What are the average utilities each month?
Are your telephone services provided, or do you have to set them up yourself and assume the charge?
Are residents provided washers and dryers in their units at no extra charge? If not, is a laundry facility available on premises? Do the washers and dryers seem to be in good shape, and are residents charged to use them?
Is there a hair salon on premises?
What types of activities are offered for residents, and how frequently? Are these recreational opportunities diverse, catering to all fitness levels and areas of interest?
Are exercise programs offered and encouraged at the property? Are residents charged for enrollment in exercise classes?
Is there a clubhouse on premises, and do you see much activity going on there during your preliminary visit to the property?
Do you see a list of planned activities on the wall of the clubhouse?
Do residents seem active and social? Do you a lot of activity outside?
Do residents have access to regularly scheduled transportation?
What kinds of amenities are in the area? Is there a grocery store within walking distance (or would on-site transportation be able to take you there in the event that you don't drive a car)?
What kinds of kitchen appliances are provided for you?
Do units have security systems?
Do all units have emergency call systems?
Are guest accommodations provided?
Does the property maintain a 24-hour, round the clock staff who could provide immediate assistance in the event of an emergency?
If meals are provided on premises, how often, and does the staff accommodate individual dietary concerns and restrictions?
Are residents held to set mealtimes, or do they have the flexibility of arriving at any time according to their own schedules and appetites? If for any reason you're unable to leave your residence due to temporary illness, doctor's orders, etc., is tray service provided? Would you be charged for that service?
Are housekeeping services provided? How much does the service cost, and what does it include? Are you provided linen service? Dry cleaning?
Are furnished units available if needed?
While running down the above checklist, make a few notes to yourself. While you toured the exercise facilities, did you spot much activity? Were the machines in good working condition? Did the staff seem genuinely pleasant and responsive, and did they know residents' names? If a dining room was on site, and your tour of the room took place during a regularly scheduled mealtime, did you spot much activity, and was it pleasant? Were residents interacting with one another? Was there much activity in the library and other common areas? Within the units, were the appliances clean and in good working order? Did the units seem safely secured? Was the carpeting and all furniture clean, if provided?
Do the common areas seem to accommodate all levels of independence (for example, are they equipped with ramps for those who are physically challenged)?
One of the best indicators you can use is the community's reputation in your city. If you've heard generally positive comments about the community, and if it's a household name aligned with a large company, your chances of being satisfied are probably better. Be sure to ask the community representatives what their occupancy rate is. If there's a waiting list to get into the community, that's a great sign. If there are plenty of units available, and you're spotting more than a few moving trucks (moving residents out as opposed to in) on the day you visit, take that as a possible warning sign. Bring a friend or family member with you on your search for a second opinion. And most of all, trust your instincts; they're the best indicator you've go.
(Realty Times 5/20/99)
Housing for Seniors Beginning to Lag
A new study has been released suggesting the nation's population of senior citizens - people in the 75-plus age range - is slowly but surely outstripping the building industry's ability to house them.
Investment Brokerage firm, in 1997 some 45,000 new senior housing units were added in the United States, and in 1998 about 50,000 were built. In 1999 about 65,000 senior units were added.
"Combined, these three years of strong development increased the senior housing inventory by approximately 7.9 percent," the report said, but, "the national senior population grew at a rate of 8.5 percent during the same time."
Adding more concern, said the Marcus & Millichap report, are indications that new construction will slow beginning next year, largely due to expected increases in interest rates.
Alternatively, the report notes that rents have tended to remain stable due to increasing competition to fill units.
In 1998, average rents at independent units of congregate care facilities were $1,357 per month, assisted living units averaged $1,839 per month and independent units within continuing care retirement communities renting for an average of $1,105 per month. Through 1999, the report said, rents have had little movement.
Senior housing properties, particularly in major metropolitan centers, the report said, have experienced sharp increases in competition which has forced them to not only remain competitive in pricing, but also to focus more sharply on providing the highest quality service to residents.
Because of the competition, Marcus and Millichap predict rents will continue to be stable and even more services will be added.
Again this year, California, Florida and Texas will lead the nation in construction of new seniors dwellings, with California added 6,662 units; Florida, 5,196 units; and Texas, 4,310 units. The brokerage company said, however, those states will add seniors fast enough that those units will be quickly used.
In the next five years, the 75 year and older population is expected to increase by 13.7 percent - roughly 2 million people. The report speculates that during the next five years senior incomes will rise by about 14.5 percent to a national average of $20,232.
With the exception of nursing facilities, senior housing vacancy remains tight at an overall average of 5 percent. Assisted living facilities, impacted by the completion of 86,400 new units in the last three years, have experienced a 5 percent increase in vacancy since 1995 to 8 percent in 1998.
As development begins to slow during the next year and more states allow these facilities to accept Medicaid patients, the trend should reverse with vacancies moving back toward 6 percent.
(Realty Times 10/11/99)
When Is It Time to Sell?
The Empty-Nester Dilemma
Wasn't it just yesterday the moving truck pulled away, leaving you to unpack boxes in the kitchen, while the kids raced each other up the stairs to lay claim to their bedrooms? Could YEARS have past since you planted the seedling in the front yard, where now stands that majestic tree? Unbelievable as it may seem, you blinked and became your parents!
Millions of baby boomers are now facing, or will shortly face, The Big Question: "What Do We Do About The Family Home?" With children grown and leaving for college or for places of their own, Fifty-Something folks find themselves grappling with a decision that many are just not ready to make.
Most boomers bought their present homes assuming they would one day make a clear-cut, economic determination. They firmly believed that once the kids were out, they would sell the big house, pocket the profit, and scale down. They logically figured that no one in their right minds would continue hanging onto a four bedroom, 2 ½ bath house after the children left. Someday in the distant future, they mused, they would be heading for something smaller, something more manageable, something more appropriate for two people.
Suddenly, THE DAY arrives ! Wonder of wonders, many empty-nesters find themselves completely unprepared. Like deer caught in the headlights of a car, they are paralyzed at the thought of having to move. While realizing it probably does not make economic sense to maintain a residence far too big for their present everyday needs, empty-nesters still stay put.
Why?
The answers are as simple, and as complex, as human beings themselves. First and foremost is the inability to face the notion that they have actually reached the "Someday" stage! Selling the big house smacks of being old. Baby boomers do not look , or feel, "old".
In addition, the home holds many emotional ties. Every room emits memories: all those family functions, all those prom pictures, all those birthday parties.
Next, there is the real issue of the disruption a move invariably causes. The process of selling one house, packing everything, buying another residence, moving, and then unpacking, is exhausting. And, where would they go? Still vibrant -- and probably still working - most baby boomers are not ready to pull up stakes and head for retirement cities.
Even if the perfect condo or townhouse complex exists just around the corner, many empty-nesters are concerned about drastically changing lifestyles. What if they hate condo living? What if they miss their backyard? What if they can't breath with neighbors so close?
What Is The Answer?
While the decision of WHEN to give up the big house will remain a personal and emotional one, some objective financial factors should, rightfully, be contemplated now:
Is The Area Appreciating Or Depreciating?
Empty-Nesters would be very wise to keep a finger on the pulse of the real estate market in their area. Tracking the appreciation record of an area is not a complicated matter. For the Internet savvy, http://www.resicom.com, is a Web site that offers the ability to check the appreciation history of any property in the US. As an added bonus, the site also has reports that predict the probability of future appreciation! In addition, call your local REALTOR and request a CMA (Competitive Market Analysis). This should tell you the direction your area is taking. If an area shows a flat rate of appreciation, or worse yet if it reveals depreciation, then you may want to seriously consider selling sooner, rather than later.
Do You Have The Ability And Desire To Keep Up With Maintenance?
Let's face it. All residences require maintenance, and the larger the dwelling, the more there is to do. If you have reason to believe you may become less than diligent about keeping up with repairs, even as MORE chores show up (the house isn't getting any younger, either!) , then you may want to consider selling . Homes that show signs of deferred maintenance (a fancy way of saying someone was too lazy, or too busy, to take care of things) will bring less value on the marketplace.
When Will Major Components Need Replacing?
The longer you remain in your home, the more exposure you have to expensive, necessary replacements. How old is your roof? What is the age of your heater? Your air conditioner?
In a nutshell, you should take a cold, hard look at the reality of your real estate. Determine how much extra it may cost you to remain in your present "comfort zone" for a few more years, and then decide if you are willing to pay the price.
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