Society is ruled by money, money is often power and it truly does keep the world running. How much money we have access to at any time can drastically change our whole lives from where we live, to the lifestyle we have to the education our children recieve.
Clearly with money having such a big impact on everything that we do in life it is only natural to want to make sure you are looking after your finances as well as possible.
One of the most efficient ways of taking care of your finances is by investing them, this is because if you simply put them in a bank account for years over time they will become worth much less. One of the reasons for this decrease in value is that generally speaking banks do not offer good interest rates and therefore the amount of interest that you receive often fails to keep up with the rate of inflation.
In other words when you put $10000 into your bank account and do not revisit it for 20 years when you do come back to use it it will be worth much less. This is because due to the rate of inflation your $20000 will have lost value and will no longer allow you to gain as much from it. This is one of the reasons (amongst many others) why it is usually a good idea to invest your money.
Generally speaking, when you invest, as inflation increases so does the worth of what you have invested in so you should come out with more money than you started with. However, there are many different fields that investors choose to put their money into and deciding which one is right for you can be really difficult. Here we have put together some ideas to help you decide which sort of investment would suit you and your needs:
- Knowledge- When investing in something it is very important that you have a lot of knowledge on the topic otherwise you can expect to lose large amounts of money. This is because if you do not understand your field then you will not be up to date with knowledge and know which direction is the best to take your investment in. Similarly, if you are not up to date you will not know when is the best time to buy and sell.
- Money To Invest- A big consideration is how much money you are hoping to invest. This is because some fields require large investments such as houses, hotels and condos, whereas others such as jewelry you can begin to invest in with just a few dollars.
- Time- It is important to consider how much free time you have to spend on your investment. This is because some investments are as simple as you buy something, leave it for a few years, and then sell it whereas others require lots of your time. For instance, some people choose to invest their money in setting up businesses, although this can be very rewarding. It does take lots of time so you need to consider any other commitments you have such as a job or a family.
- Area- Depending on the type of investment that you want to make, the area that you live in can have a massive impact on whether it is a good idea or not. The majority of investments can be done from anywhere due to the internet however, when investing in things such as houses, area really does matter.
What you choose to invest your money into is up to you however some investment industries are growing while others are shrinking. With this in mind this article is going to focus on investing in 55 plus communities.
What Is A 55 Plus Community?
We all know that the aging process can bring about many challenges. Some of the biggest challenges faced by elderly people today include loneliness, isolation, memory and struggling with personal care. Therefore, one of the most effective ways of combating the issues faced by the older population is by creating specialised communities.
These communities allow them to still have a certain level of independence and privacy, for instance still having their own apartments where they are free to have alone time. However, they also provide many forms of assistance that may be required for instance the vast majority of 55 plus communities will do your cooking and cleaning for you.
Similarly, they will run activities to allow you to stay connected to the rest of the community and feel less isolated.
How Much Does Setting Up A 55 Plus Community Cost?
Unlike some investments a 55 plus community does require quite a large start-up cost and therefore you need to have quite a lot of free money that you can invest. Some of the biggest costs associated with setting up a 55 plus community include:
- Insurance- One of the often forgotten costs when it comes to setting up this kind of business is the insurance. There are actually multiple forms of insurance that you will need to set up a business with in this industry and you should expect to spend multiple thousands of dollars a year on this.
- The Building- The building itself can be expected to be a massive cost. Obviously, you could choose to rent or lease a building but as an investor this is often a poor move. So, in terms of owning the building you have two main options, you could either buy a building or build it yourself. The only problem with buying is that you will have very specific requirements so would probably have to redesign the whole layout anyway. If you aim to have 40 residents you would need at least 40 rooms, 40 en-suites, a kitchen, an eating area, a few lounges, a staff room and reception area.
- Utility Bills- Utility bills are also a massive cost especially when you are catering for a large amount of residence and staff. Some main utility bills to bear in mind are gas, electric, internet and water.
- Furniture- Depending on the exact terms of your 55 plus community you may or may not need to provide furniture for individuals, but in the vast majority of cases this would be expected. On top of this you will also need furniture for all of the public areas such as tables, chairs, sofas and televisions.
- Advertising- With any business advertising is important. However, with this sort of business it is even more important to advertise as moving is a massive decision for people to make so they need as much information as possible.
- Staff- The vast majority of businesses will require you to employ staff. In this industry however you will probably need a range of staff from cleaners, to cooks, to receptionists to medical professional all of which you will need to pay a wage.
Clearly setting up a 55 plus community is expensive however, that is not to say that it isn’t worth it. Big investments often lead to big rewards but you need to be aware of the risk that you are taking.
Pros To Investing In A 55 Plus Community
- Potential For Big Reward- With such a big project there is potential for you to earn lots of money, perhaps even millions of dollars. The potential for such businesses is uncapped as there is always the option to extend or set up more buildings should you wish to.
- Doing Something Good- We all know that doing good makes us feel good so why not invest in a positive way. Setting up a 55 plus community and really caring about the people that your company cares for could be very rewarding emotionally as well as financially.
- Constant Earnings- Another positive is that unlike with many investments you will not receive one large payout but rather ongoing monthly payments. This means that it really could be the gift that keeps on giving.
Cons To Investing In A 55 Plus Community
- Large Investment Required- In order to set up a 55 plus community you need a large amount of cash money that you are free to invest. It will more than likely mean tying the vast majority of your money up in one investment.
- Time- Unlike simply buying something and then selling it at a later date this sort of investment will require a lot of time from you. Therefore, it is important to make sure that you have enough free time to make such an investment, you should consider other commitments such as a job or family that you also have.
- Speciality- If you do not already know a lot about this industry it can be difficult to get your head around so it is important to do your research and you may need further support to ensure that you are doing everything safely and legally.
- Staff and Ongoing Costs- It is also important to remember that it is not just the upfront costs that you need to worry about but rather there are many ongoing costs such as staff wages, utility bills and food.
Overall, this could be both a financially and emotionally rewarding investment. However, it is definitely not suitable for beginners and should only be done by more experienced investors. Of course there are lots of risks involved with this sort of investment but the rewards can also be massive.