Buying Retirement Apartment for Investment

revs

Hi,

I would be grateful of any advice anyone could give me on buying a retirement apartment for investment.

I'm 34 years old, no income/job with my own property (mortgaged) and approx £93,000 available to invest. I've considered buying a retirement property to rent out. If I'm unable to buy it, I've considered buying it through my parents whom are both 60+.

This 1 bedroom property is approx £35,000 - previously sold for £65,000. Its warden controlled, has communal areas, and is walking distance from the city centre. The lease is 72 years, service charge is £1500, ground rent £355. I could achieve monthly rental of approx £550.

There are quite a few of these apartments for sale and one for rent but the ones for sale are not selling very fast.

Could anyone offer any advice in terms of investing in this type of property?

Thanks

ognum

Please don't buy it!

The reason there are a lot for sale and the price is low I'd because they have little resale value.

You will be left paying all the service charges even when the flat is not rented out. How long has the one up for rent been available, where are these elderly people getting the money for that amount of rent?

Think very carefully about this.

zzzLazyDaisy

You may not get a mortgage on a 72 yr lease, and even if you do, any sunsequent buyer won't unless you go through an expensive process of extending the lease. Also the lease often prohibits renting out. Finally, check the monthly maintenance/service costs, they are often horrendous. These retirement places are usually a millstone for people who actually need to live in them, but as a commercial investment... don't do it!

Edit - just saw that you don't need a mortgage - but the comments will still apply to any future buyer.