Jun 21, 2023

Guide to Buy Retirement Home for Senior Citizens

by Godrej Properties Limited

650

2

With increasing life expectancy, investing in retirement homes is popular among elderly individuals in India. These homes provide a tailored lifestyle for seniors' residences but require careful financial planning. This article offers insights on purchasing a retirement home, including cost considerations, guidelines, and available options for senior living.

Benefits and Considerations of Retirement Home Ownership

Retirement homes have distinct amenities and services for seniors, making them more expensive than regular homes. They feature wheelchair accessibility, safety measures, skid-free floors, natural light, emergency call buttons, and LPG gas detectors in each apartment. Additionally, retirement homes offer medical support, housekeeping, laundry facilities, concierge services, recreational activities, and personalised wellness programs. 

Here are some considerations to keep in mind when it comes to retirement home ownership:

Understanding the Cost of Retirement Homes in India

The cost of a retirement home in India depends on whether you rent or buy a property.

  • Developers typically charge these specialised projects a 30–40% premium.
  • The annual maintenance cost for retirement homes ranges from Rs 15,000 to Rs 40,000.
  • Monthly rentals for well-designed homes with superior facilities can go up to Rs 45,000–50,000.
  • Buying a retirement home can range from Rs 30 lakh to Rs 2 crore for 1 BHK to 4 BHK homes.

Guidelines and Regulations

In 2019, the Indian government implemented the Model Guidelines for the Development and Regulation of Retirement Homes. These retirement housing guidelines include:

  • Compliance with the Real Estate (Regulation and Development) Act (RERA) 2016
  • Registration with Urban Local Bodies (ULB) or development authorities, with registration documents clearly stating the agreed-upon services and payment received
  • Sale agreement for retirement homes involving the project developer/promoter, service provider, and resident
  • Adherence to prescribed building codes, building bye-laws, and Floor Area Ratio guidelines

Options for Living in a Retirement Home

There are three main options for living in a retirement home

  1. Direct purchasing: It allows individuals below the age of 50 to buy a retirement home, which can then be occupied by those aged 55 and above. The property can be passed on to children or sold if needed.
  2. Deposit model: Occupants pay a percentage of the flat's cost and live in the house for a specified period, after which the deposit is returned with certain deductions.
  3. Renting a retirement home: This is a popular choice as it allows individuals to experience the retirement housing's facilities and surroundings before making a long-term commitment.

When buying a retirement home, careful planning and considering guidelines, unique features, costs, location preferences, and available options are essential for an informed decision.

 

Frequently asked questions

1. Can I buy a retirement home at any age?

Ans: While anyone below the age of 50 can purchase a retirement home, it can only be occupied by individuals aged 55 and above.

2. Are there any location preferences for retirement homes in India?

Ans: Southern cities such as Kerala, Chennai, Bangalore, Kochi, and Coimbatore are popular among retirees due to favourable weather, infrastructure, and healthcare systems.

Previous Post
Next Post