An introduction to Care Home Investment:
The UK has an aging population, first and foremost, with more than a fifth of the entire population now being over 60-years-old. With life expectancy increasing also, it is predicted that by 2081 there will be three times as many people over 85 in the UK. Indeed the current number of available rooms will need to double in the next 20 years to match the projected demand. Not only that, but also, increasingly pensioners are choosing to move into retirement homes rather than becoming dependent on their family members, and thus there is an increased demand for quality solutions.
With the globalised nature of the world, and also the improvements in the quality of retirement homes, it is becoming a more obvious choice, and a much easier transition. Increasingly families are spread across the country, if not the world, and thus often pensioners can in fact stay more independent if they remain in an area they already know so well. With more families now being responsible for footing the bill, there are also now raised expectations with regards to the quality of homes.
With the government struggling to cope with the increased demand for spaces, there is also an elevation in the number of private homes. As a result of the economic crisis, funding has also become limited, and thus the opportunity has been opened up to individual investors, as an alternative approach to raising capital. This means that now it has become much easier for individuals to benefit from commercial investments, and retirement homes have proved to be one of the best long-term options.
Why Invest in Retirement Homes?
The statistics speak for themselves with regards to the necessity for an increase in retirement home facilities within an aging population, and additionally there are a number of cultural shifts enhancing this need even further.
Commercial investments of this type are now seen as a beneficial part of any property portfolio, and in particular Care Homes offer a none-cyclical, regular and reliable income, with great long term prospects, and minimal hassle.
As with any investment, timing is crucial, and the current economic situation has opened up new opportunities to shrewd investors. There has been recent heavy investment within the sector as more and more people recognise its potential, and it is crucial to act quickly, in order to maximise the benefits.
The hands-free nature of commercial investments of this manner makes them attractive as part of an established portfolio, forming a secure foundation for a portfolio, allowing established investors to focus on other projects simultaneously.
High Demand + Long Term Prospects
As mentioned earlier, demand is already heavily outweighing supply, and this is only set to continue, as the population continues to age. With the number of rooms currently available needing to double to match the projected demand over the next 20 years, the investment will remain attractive long into the future, and this can be backed up by the guaranteed income offered by the operators.
Below RICS Valuation + High Net Yields
Care Home investment is available at up to 27% below RICS valuation, and the benefit of this is visible in the attainable net yields. Such assets outperform traditional property investments by achieving yields of at least 8%, which occasionally is also guaranteed for a period of up to ten years.
Hands-free & Hassle Free Passive Income
After the purchase process is complete, the asset is completely looked after by a Professional Management Company. This means that not only do you benefit from experienced management in order to secure high occupancy rates, but also you don’t have any additional responsibilities as the investor. Therefore you won’t be receiving any early morning phone calls to fix a boiler or a leaking tap, and on top of that, the cost of repair and maintenance is spread out between several rooms, meaning that you benefit from economies of scale not usually available to individual investors.
Commercial property, in general, has seen an increased level of private investment as developers have searched for alternative methods of raising capital, and it is seen as a great way to diversify an existing property portfolio. It behaves independently to the traditional property market, and thus acts as security.
Built-in Exit Strategy
As mentioned previously, the investment will remain attractive long into the future and thus demand will be high. This means that exiting the strategy will be considerably more straight forward than a traditional residential property. In addition to this, it is often the case with Care Home investments that the developer is contractually obliged to purchase back the asset at any time between three to ten years of the initial investment, thus easing the process even further.
As care home investment is SIPP compliant, investors can benefit from tax-free income and capital growth.
The current economic climate has opened up commercial investments to individuals, which previously were restricted to developers and investment companies. It is crucial in any sector to adapt as the environment shifts, and now such opportunities are a fundamental part of a successful portfolio.
The Care Home industry is growing, and there are a number of statistics providing assurance that it will continue to do so long into the future. It provides an incredibly secure investment, as well as a profitable one, and with limited hassle, it offers an opportunity for all. There is a ready-made exit strategy in place, and thus really it is a no-risk investment.
Care Home Investment with Emerging Property:
Emerging Property works with the leading Care Home developers and Management Companies to provide the best possible investment opportunities, with guaranteed income for up to ten years and fixed buy-back arrangements contractually agreed.
We have a diverse team of professional investment experts constantly researching for new and rewarding opportunities, as like all property assets, successful Care Home investment is reliant on a number of specifics.
For detailed information on this unmissable investment please contact us by filling out the form below or calling us +44 (0)203 287 8727. We can send you:
- A Comprehensive Investor Report.
- Availability, Price List, Floor Plans.
- Details on the Guaranteed Rental.
- Further information on Guaranteed Returns and Long-Term Growth.
- Please ask us any questions you have, we are happy to help.
Please ask us any questions you have, we are happy to help.
Care Home Investment, UK
- 10 Year Income Guarantee.
- Minimum 8% net annual returns.
- Discounted 26.97 Below RICS.
- Clients deposit insured.
- Fully-Managed and Hands-Off Investment.