Senior Living Sector
The thriving senior living sector is New Zealand’s largest supplier of new housing. Tap into this opportunity to invest in this thriving, stable sector.
A growing need to build and provide more senior living facilities presents unique investment opportunities.
NZ needs 18,000 new retirement village units by 2031 to house an ageing population*.
*JLL Retirement Village Market Forecast as reported by Stuff, 9th July 2020
Strong growth delivers attractive returns
Converging factors make lending to the senior living and aged care sector attractive for investors:
Baby boomers are retiring, living longer and choosing to spend their golden years in safe, sociable environments with likeminded residents. With steep increases in New Zealand property prices, senior living communities enable seniors to cash up the family home and live off the proceeds. The sector is orderly, well-regulated and provides a quality lifestyle for retirees.
Baby boomers are driving demand
The first baby boomers turned 60 in 2006, signalling the start of a 20-year period when a huge wave of Kiwis would reach retirement age. With this generation living longer than any that preceded it, it’s creating increasingly powerful demand for senior living communities and aged care facilities. Almost 18,000 new senior living units will be needed in the next decade alone.
Source: JLL Retirement Village Market Forecast as reported by Stuff, 9th July 2020
Key trends driving the growth of New Zealand's senior living sector include:
A baby boom at the end of the Second World War. In 2016, the first of these baby boomers turned 70.
Senior living communities are gaining in popularity. In 2015 around 12% of the over-75 population chose to live in senior living communities, up from 9% in 2012.
Increased housing equity
Senior living communities become comparatively more affordable as residential real estate prices skyrocket.
Living arrangement trends
The tradition of elderly parents living with their children is declining.
Living and care options
Many senior living communities now have onsite aged care facilities and other health related support services allowing residents to 'age in place'.
"I am a hands-on investor; I've recently discovered Senior Trust and am keenly awaiting their next offer to increase my investment. I appreciate that Senior Trust pays an excellent interest rate - and on time. I have confidence in the company's strict criteria for funding retirement developments."