Is A Retirement Home A Good Investment?
A retirement home or care home investment is a specialist commercial property investment that is a fairly new concept in terms of private investment for profit. In the recent years the UK’s population has experienced an increase in elderly people over the age of 65. This is down to a few factors but the most obvious one would be the increased life expectancy, resulting in a higher number of retirees and pensioners in the UK.
Because of the high numbers of people needing specialist care at an old and vulnerable age, the demand for care home communities and retirement homes has also increased. It is estimated that out of the 65 million people in the UK, 18% of those are over 65 – a record growth in UK history.
If the demand is not enough to convince you that retirement home investments are profitable, the supply should seal the deal. So far, due to the rapid growth of over 65’s there aren’t enough developments to house many of the retirees that need it. Although there are new developments are care homes opening it isn’t nearly enough to cover the huge demand. This is important for the investor because this asset class is still in high demand with little supply, making it a lucrative investment.
Where To Get A Care Home Unit
Now that you have done your research, you may be wondering how to invest in retirement homes so you can get the best profit. First you need to find a good deal on a care home investment. Typically, care homes are sold as a room or ‘unit’ with one bed each. You can purchase a unit or more than one depending on how big your budget is and what your goals for returns are.
Care homes can start at a small price of £70,000. The returns on care homes are high at 10% for many care home opportunities. The price and returns will vary depending on the location too. Luxury care homes may cost you more to purchase, but the rent for the units are higher, which means more returns.
To get a care home, you should contact a professional property broker. Portfolio managers will be ideal for investors who are looking for good deals with hands-off property investments and high yields per annum.
Visit the Sterling Woodrow Property Investment YouTube channel to find out more about property investing.