Senior living projects: Assess developer track record in service delivery
Published by Business Standard
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that maintenance costs in such projects often rise sharply, noted that transfer fees or profit-sharing clauses can hurt heirs, and suggested checking billing transparency and keeping separate contingency funds.
What Abhishek Kumar said
What costs should I check before buying into a senior living project?
Maintenance charges in these projects are high because they pay for specialised staff and services, and they tend to climb steeply over the years. So before you commit, I suggest checking how transparent the billing is and looking at how the developer has raised fees over time in its other senior living projects. That history tells you what to expect.
What should I know if my children will inherit a senior living home?
Read the transfer terms carefully. Some developers impose steep fees when the property changes hands, or include clauses that give them a share of the profit when it is sold. Either can eat into what your heirs finally receive from the property, so check these terms before you buy if you plan to pass the home on.
How much of my savings should go into a senior living property?
Not all of it. I suggest keeping separate contingency funds and making sure your whole net worth is not tied up in a property whose use is restricted. Such homes can be hard to sell at short notice, and a medical emergency is exactly the time when you may need ready money.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on money management
The article looks at the growth of senior living projects in India, driven by an ageing population, nuclear families and children moving away. It covers the services and age-friendly design these communities offer, drawbacks such as high maintenance costs and limited resale, and what buyers should check about developers, operators and contracts.
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Senior living projects: Assess developer track record in service delivery