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Senior Living Communities

senior living
Suppose for a moment that you, a loved one, or a client is considering moving to a retirement community. Pull up Google or another online search engine and type up the term “senior living” or “retirement community”. You will find results on everything from active adult living to assisted living to memory care, and much more. Understanding the differences between these and other types of providers can save you a lot of time as you research the choice that best meets your particular needs and objectives.

Senior living communities can generally be categorized among the following: 1) independent living, 2) independent- plus, 3) assisted living, and 4) skilled nursing care. Independent living communities cater to residents who are able to live, well, independently. Some independent living communities require the home or condo to be purchased, while others are rental arrangements. Residents of independent living communities may very well require assisted living at some point, but the community does not provide any assisted living or healthcare services.

Independent-plus communities are almost always apartment style rentals, which cater to those who live fully or mostly independently. If a resident should require limited assisted living services the community is equipped to provide such services to the resident in their own apartment. The cost of these services is paid by the resident at the going rate.

Assisted living communities cater to those who require substantial assistance with the daily activities of living, such as eating, dressing, or bathing, but who do not require 24-hour skilled nursing care. Basic services are covered under the monthly rate but other services may be an additional cost. These facilites are maintained very clean with proper waste disposal, both medical and general. Space is limited, so they may make a cleanout every year to remove all their unwanted items.

Skilled nursing facilities provide services for those who require a higher level of care, often 24-hour care provided by a RN or LPN. Increasingly, skilled nursing facilities are adding more memory care units for residents with Alzheimer’s, dementia, and other cognitive impairments. As with an assisted living facility, there will likely be a base rate and additional ancillary expenses.

Technically speaking, assisted living and skilled nursing facilities are not always considered senior living communities because many do not even carry a minimum age requirement. Although the majority of residents are older there are an increasing number of residents under the age of 55 residing in such facilities.

There is one other type of senior living community that is a hybrid of each of the above called a continuing care retirement community, or CCRC. CCRCs come in many different shapes and sizes but the common denominator is that the services provided within a CCRC span the full continuum of care. Residents move in while they are still able to live independently, but have the peace of mind of knowing that if they should require assisted living or nursing care in the future it will be provided by the community within which they already live. Many CCRCs require an entry fee, while others operate under and equity or rental arrangement. The specific type of residency contract will determine if and by how much the resident’s monthly rate will increase when they begin require care services.

Now that you understand how one type of retirement community varies from another you will be in better position to narrow down your choices when you begin to do your research.

The real estate market in Chicago

Chicago real estate skylineThe real estate market is the investment sector involved in dealing with physical buildings, commercial or residential.

As everyone has to live somewhere, either owning or renting the place, you can imagine that this is a huge market globally and anywhere in the world locally as well.

Chicago is the third largest metropolitan city in the United States with a large population, a diverse economy with an emphasis on financial markets, and a stable labor market. Due to these favoring factors, the real estate market in Chicago is considered as one of the best rental real estate markets in the US.

Why Invest in Chicago Real Estate Market?

The Chicago real estate has recently been ranked as one of the most undervalued markets in the world. While over the years Chicago has lost a small part of its residents, the city’s world-class skyline is cluttered with new skyscrapers being constructed as we speak.

There is certainly a building growth taking place over there but not a frenzy, creating an incredible amount of business and favourably affecting the real estate market in the region. There has never been a better time to invest in real estate in the Windy City than right now.

Chicago Real Estate Prices are Affordable

With high real estate prices, lower-than-average job and population growth, Chicago City may not seem like a better place to invest in real estate. When focusing on finding the biggest capital growth and income, you will see that Chicago neighbourhoods offer some homes very high rates from rental each month.

This shows the real estate in Chicago is more affordable than many other areas in the United States today. In the neighbourhoods where real estate properties are the most undervalued, investing in a flat for rental can be cost-effective.

Advantages in Investing in the Real Estate Market in Chicago

  • Real estate values usually increases with inflation. In fact, many times real estate often rises faster than inflation because of comparatively less availability relative to other consumer goods and services. The Chicago real estate market tends to be inelastic as demand increases prices will rise faster in this city.
  • Interest costs can be fully tax deductible for your personal residence or for commercial real estate investment. This means the cost of funds is reduced by your taxable income.
  • Another important tax advantage to owning a property in Chicago is the ability to depreciate any property being rented. Devaluation is a legitimate deduction used to offset revenue that would otherwise be subject to taxes. This means you can prove a loss on your investment, utilize that loss to reduce your personal income, and thus lower your taxes.
  • Buying a Chicago real estate property gives you complete flexibility and prospective business opportunities. You will find the best opportunities to organize the financing, bring all the elements together, and make something where there was nothing before.
  • The commercial real estate investment is that such investments yield compounding cash flows. Taking benefits of this brings a fairly long-term horizon, but that gets back to the tortoise and hare metaphor.

Conclusion

The Chicago real estate market is much more healthy than it was a decade ago. This does benefit buyers more than sellers at the moment as prices are still low relative to other cities in the country. The Chicago’s real estate market is on the right track and can be a good prospective business opportunity.

If you are interested in learning more, contact a top broker and see what they currently have on offer. The Kale Realty listings is a good starting point where you can get a good idea of price levels and the most recent properties on offer.

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