Care Home Investment UK
The Health and Social Care Industry are currently worth in excess of £20 Billion. The increase in demand is very easy to understand when you consider the great advances in modern medicine and technology. The UK has an ageing population with government reports indicating that the number of care homes beds need to at least double over the next 25 years to keep up with the expected demand. This asset class offers excellent defensive qualities in times of economic uncertainty.
With higher returns compared to more traditional asset classes, care home investments can be highly profitable, offering annual returns of up to 10% or more and the opportunity for capital growth. Care homes are operated by experienced and professional companies who are dedicated to providing an excellent level of care and facilities to residents, as well as ensuring that you receive your regular rental returns.
With years of experience, we have found that care home investments are massively under-valued, as a fully-operating care home can often offer investors a instant income as they do not have to wait for the property to be built.
Care homes are what we see as a mid-range investment coming in at an entry price of around £70k-£80k. Rental yields are also attractive at around 10% for many of these investments.
Best Location For Care Home Properties
Care-Homes are a necessity in all areas of the UK, however as an investment certain areas do offer better prospects.
Firstly we look at the ratio of elderly people, so, for example, Manchester has a very high ratio of young people, meaning it is suitable for student accommodation and apartments for the young professional but the demand of care-homes is far lower.
As an experienced investor, it is important to look at the demographics, for example, locations far from the hustle of large cities, be it towns, villages and even the country-side will have a much higher retired population.
It is these areas where the elderly wish to remain, therefore demand on care-homes is consistent.
In addition to this, these more remote locations are by nature cheaper than anywhere in or near a large city centre, therefore prices remain far lower, thus offering a better pound for pound investment with higher yields.
March 21, 2019
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