Buying a Home in 55 Plus Communities: Key Things to Know

When considering buying a home in a 55+ community in Canada, it's essential to understand what sets these age-restricted developments apart from traditional neighbourhoods. Designed with the needs and lifestyles of older adults in mind, these communities offer a unique blend of amenities, social opportunities, and conveniences that cater specifically to older residents. However, it's important to weigh the benefits and potential limitations, such as property restrictions and community rules, before making this significant investment. This guide will walk you through the key factors to consider when buying a home in a 55+ community.

6 Factors to Consider When Buying in a 55+ Community

• Understand the community's amenities, regulations, and associated costs.
• Consider whether a community primarily of your age group is more appealing than one with more age diversity.
• Clarify who is responsible for maintenance—some senior housing has options for in-home assistance.
• Consider your future health and accessibility requirements if you intend to age in place within the community.
• 55+ communities may have restrictions on the length of visits by children.
• Because of the restricted buyer pool, homes in 55+ communities are typically harder to sell and may sell for less than comparable homes elsewhere.

What Is a 55+ Community?

A 55+ community is a residential neighbourhood tailored specifically for adults aged 55 or older. These neighbourhoods cater to the needs and preferences of older adults, often offering a range of housing options such as apartments, townhomes, single-family houses, and even RV parks.

Some age-restricted communities are designed for active, independent living, while others provide more supportive assistance as residents' needs change over time. The primary focus of 55+ communities is to enable aging in place, allowing seniors to live independently while having access to amenities and services that support their lifestyle.

In these communities, residents typically find like-minded peers with similar interests and lifestyles, fostering a sense of community and belonging. Some neighbourhoods are centred around specific activities like golfing, providing opportunities for residents to engage in their preferred pastimes.

55+ communities may be age-restricted, where a significant portion of residents must be 55 or older, or age-targeted, marketing themselves to attract older adults without strict age requirements.

Are Age-Restricted Communities Legal in Canada?

While there are many laws aimed at protecting against housing discrimination, provincial laws make specific exceptions for age-restricted housing. For example:

• The Alberta Human Rights Act allows for seniors-only housing, though other age restrictions, such as adults-only, are no longer allowed in new construction. Current age-restricted condominiums, cooperative housing units, and mobile home sites must convert to either all-ages or seniors-only by 2033.
• The British Columbia Human Rights Code specifically exempts age discrimination in housing for the purposes of having communities reserved for those 55 and older. 55+ strata bylaws have exemptions for partners and children.
• The Ontario Human Rights Act protects against age discrimination but allows for preferential 65+ age requirements (and Freeman v. March of Dimes Canada upheld a preferential 50+ age restriction). Adults-only age restrictions that forbid children are not allowed.

Can You Buy a Home in a 55+ Community if You're Under 55?

It varies depending on the community. Generally speaking, at least one member of the household should be 55 or older. Be sure to read the community bylaws for specific age-related rules. Some communities also allow a certain percentage of households to be younger than the age requirement.

Pros & Cons of 55+ Communities

55+ communities can be an excellent option for older adults looking to simplify their lifestyle, enjoy convenient amenities, and connect with others in a similar stage of life. However, these communities aren't the right fit for everyone. Understanding both the advantages and potential drawbacks can help you decide whether a 55+ community aligns with your needs and retirement goals.

Pros of 55+ Communities

Wide Range of Location Choices

55+ communities are available throughout the country, giving retirees the flexibility to move closer to family, enjoy a preferred climate, or remain in a familiar area.

Enhanced Safety and Security

Many communities offer gated entrances, visitor policies, and security features that help residents feel safe and secure.

Amenities and Social Opportunities

Residents often have access to amenities such as fitness centres, pools, clubhouses, golf courses, and organized events that encourage an active and social lifestyle.

Reduced Maintenance Responsibilities

Many exterior maintenance tasks, landscaping services, and common-area upkeep are handled by the homeowners' association, reducing the time and effort required to maintain a home.

Strong Sense of Community

Living among peers can foster meaningful friendships and a greater sense of belonging, while the quieter environment appeals to many retirees.

Cons of 55+ Communities

Additional Fees and Expenses

Many communities charge HOA fees that cover maintenance and amenities. While these services can be valuable, the added monthly expense should be factored into your budget.

Community Rules and Restrictions

To maintain community standards, many 55+ neighbourhoods have regulations regarding visitors, pets, property appearance, rentals, and noise levels.

You should also check the specifics of the age requirements. Generally speaking, only one member of a household has to be older than 55. (Not necessarily a negative.)

Limited Access to Medical Care

Most active adult communities do not provide on-site healthcare services, requiring residents to arrange their own medical appointments and transportation.

It's important to distinguish between active adult communities (no assistance required) from independent living communities (assistance may include meal plans, housekeeping, and similar) and assisted living communities (assistance may include everyday tasks like dressing and hygiene). Generally speaking, only the latter two have on-site medical care.

Of course, every community is different, so you should check what services may be available.

Smaller Living Spaces

Many homes in 55+ communities are designed for one or two occupants and single-level living, which may require downsizing possessions when moving from a larger home.

On the plus side, these homes may be designed with age-in-place features, or in such a way to facilitate adding those features later.

Less Age Diversity

While living among peers is one of the selling points of living in a 55+ community, the reverse is also true: some people find they prefer living in a mixed-age neighbourhood.

Evaluating Total Costs of Age-Restricted Communities

Often, homes in 55+ communities are listed for lower prices than homes in comparable unrestricted communities. This is due to several factors, including generally smaller homes and a restricted buyer pool. However, the home's purchase price isn't the full story.

Many purpose-built 55+ communities are also lifestyle communities. This means you may have:

• Resort-Style Amenities: Features such as clubhouses, fitness centres, pools, and golf courses add value and increase costs.
• Maintenance Services: Many communities include lawn care, exterior maintenance, and other services that simplify homeownership.
• HOA Fees: In addition to paying for the above, some communities have staff like lifestyle directors to help organize social activities and events.
• Health and Security: While not all 55+ communities offer these, any benefits like gates and community-sponsored transit add to costs.

Some 55+ communities are less like master-planned communities and more like normal condo buildings, just with age restrictions. With these, you have to factor in condo fees, which tend to go up as the building ages and requires more maintenance. Special levies may also be a concern.

Monthly cost—and future cost increases—are especially important for seniors living on fixed incomes.

Questions to Ask Before Buying in a 55+ Community

Before joining a 55+ community, it's crucial to ask the right questions. Prospective buyers should inquire about the available amenities, the community's location, associated costs, regulations, and whether it aligns with their future needs. By addressing these key points, it will be easier to decide if a specific 55+ community is the right fit for their lifestyle and preferences.

What Are the Amenities?

Residents looking to purchase a home in a 55+ community should inquire about the range of amenities to ensure they align with their lifestyle and preferences. Active adult communities offer a variety of amenities and services, including perks like fitness centres, pools, and social gathering areas, as well as access to parks, trails, shopping, and cultural centres. Some communities even provide concierge services for coordinating various needs and offer spaces for health visits and telehealth services.

Additionally, the cost of amenities should be considered, as 55+ communities are typically master-planned and come with an HOA.

Before making a decision, potential buyers should carefully evaluate the amenities available to ensure they meet their desired lifestyle and budget.

Is It In a Good Location?

Exploring a 55+ community's proximity to essential medical services is crucial, as access to doctors, hospitals, and other healthcare facilities is often paramount for residents in this age group. Being close to medical services can provide a greater sense of security and peace of mind, whether for emergencies or routine medical appointments.

It's also essential to consider the distance to pharmacies and grocery stores. Easy access to these sorts of amenities can make daily life more convenient for individuals residing in a 55+ community, contributing to a higher quality of life and overall satisfaction with the location.

Finally, when choosing the right location for a home, it's worth evaluating the community's proximity to recreational areas, parks, and relevant attractions. Having opportunities for leisure activities and social engagement nearby can bolster the lifestyle of residents in a 55+ community.

What Are the Regulations?

Before committing to buying a home in a 55+ community, potential buyers will want to understand the regulations governing the community. One key aspect to inquire about is the rules regarding visitors. For instance, some communities may have restrictions on how long visitors can stay or the amenities they can access.

Maintenance regulations are another big factor—you'll want to know who is responsible for maintaining the exterior of the homes, common areas, and facilities within the community. Other regulations to consider are those related to pets, parking, and noise levels.

By clarifying these 55+ community regulations upfront, buyers can avoid any surprises or misunderstandings down the line.

Will the Community Fit Your Future Needs?

Before purchasing a home in a 55+ community, potential buyers should ask specific questions to assess if it aligns with their future needs. A good starting point is to evaluate the types of active adult communities available. Luxury, apartment-living, golf-centric, resort-style, themed, niche, and affinity communities offer various lifestyles and amenities tailored to different preferences.

Understanding the amenities and services provided will be essential. From fitness centres to concierge services and access to parks, public transit, and clubhouses, these offerings should match the residents' desired lifestyle.

Of course, cost considerations play a significant role in a home-buying wishlist. Monthly costs, which can vary widely, generally come down to location, amenities, and real estate prices. Choosing the right 55+ community might also involve evaluating recreational activities, work support, nearby amenities, financial resources, and proximity to family and friends.

It should be noted that most 55+ communities are tailored to independent living and don't provide assisted living services.

Finally, it's wise to tour prospective 55+ communities, engaging with current residents and utilizing online tools to find the place that best fits their future needs.

Selling an Age-Restricted Home: Plan Your Exit Strategy

Selling a home in an age-restricted community comes with a few unique considerations that can affect how quickly it sells and how buyers perceive it. Understanding these factors ahead of time can help you set realistic expectations and position your home more effectively in the market.

Restrictions: Moving on from a home in a 55+ community can involve a few complications that aren’t always immediately apparent to buyers or their heirs.

Many of these communities restrict renting or require board approval, which limits an owner’s ability to use the property as an income-producing asset. The intent behind these communities is to facilitate social bonds, so they prioritize owner occupancy.

In some cases, even if a home is inherited, the new owner may not be eligible to live there unless they meet the age requirements. Combined with rental restrictions, this may mean the property needs to be sold rather than retained. These rules reduce flexibility and should be carefully considered when evaluating long-term ownership or estate planning.

Limited Buyer Pool: Homes in 55+ communities are, by nature, limited to buyers age 55 and older, so a large percentage of the general market will pass you by. Working with a real estate agent experienced in marketing properties in active adult communities can help you reach qualified buyers and position your home for a successful sale.

You're in an HOA: All 55+ communities have some form of HOA, as otherwise age rule enforcement isn't possible. Most of these communities have additional rules as well as fees to maintain amenities, common areas, and community services. Some older homebuyers who qualify for the community will be less interested due to the rules and ongoing (possibly rising) costs.

Find the 55+ Community That Fits Your Needs

Living in a 55+ community can offer various benefits, whether it's convenient amenities, exciting social activities, or a greater sense of community. However, it's important to weigh make-or-break factors like location, costs, regulations, and future needs before committing. By asking the right questions, buyers can find a 55+ community that aligns with their lifestyle.