Tuesday, September 23, 2008

What makes Golden Sunset Resorts viable?

Based on my observations and discussions within the group of senior citizens, I had visualised the concept of Golden Sunset Resorts. Two important aspects missed or misunderstood by present entrepreneurs in schemes for housing for Senior Citizens, are according to me :

  1. Senior Citizens are vary of schemes where they have to outright purchase the property. They have lost money in the past as such projects were not completed or were of inferior construction.
  2. Senior Citizens in Group 2 [see post: The Golden Sunset Resorts] are not bothered where the resort is located. They would opt for it if facilities provided are good and expenses are within their budgets.

The project can be viable if it is situated outside the city limits where land rates are still lower. A larger plot should be purchased as it would facilitate expansion/other usage in near future.The construction should be prefabricated, which can be dismantled and shifted when necessary. It should be near an urban center where medical facilities are available within a reasonable distance. Like all resorts the project should be on occupancy bases i.e. rental basis. Special packages can be offered for monthly bookings for rooms/services availed. Guests should have the option to walk out if they are not satisfied.

The layout and construction would be different for Sunset resort. Golden resort should have both rooms and dormitory. My feeling is that Senior Citizens would finally prefer the dormitory as privacy looses its priority as age advances. Being together would be most prefered option. This could bring down the cost substantially. All structures should be single storey with a wide veranda all around. Nothing can replace sitting/lying in the sun, weather permitting.

Apart from normal Spa services in the Sunset Resort, especial provision of services liked/required by Senior Citizens should also be planned for. These can be like simple oil massage in the sun, physio-therapy type body massages/baths. After all guests of Golden Resort would be regular customers of the Sunset Resort. Young persons from the neighbouring villages can be encouraged, in their spare time, to be with the guests for odd jobs and earn some pocket money.

Both resorts should be beautifully landscaped, have a common meditation cum praying center, areas for playing/entertainment. At the planning stage itself provision for expansion and alteration should be incorporated. Once the nearby urban area engulfs the resort area and land prices sky-rocket, the resorts can be relocated outside the city limits and the investor can go for the kill. The concept has the potential of becoming a national and international brand chain.

In India the natural urge to leave property/assests to children is very strong. This normally overlooks the treatment child had melted out to the parents. Even reverse mortgage would take time to become acceptable in our country. By providing an option on rental basis, we can attract a larger group who can sell their property and invest the money. Their monthly expenses can be met from the investment income. The amount invested goes to the children after both have commenced their final journey.

The beauty of this proposal is that resorts support each other. Main customers of Sunset Resort would be the residents of Golden Resorts-for some facilities if not all. Likewise children, friends and relatives of residents of Golden Resorts will have a place to stay in Sunset Resorts and hence can conveniently visit them as well as have a holiday them self. A win win situation all round.

Do you think this is the time to exit Indian stock markets?