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Ten Things You Should Know Before Getting into the Care Home Investment Industry

care home investment

10 Things To Know Care Home Investment Properties In 2018

There are so many different types of care home facilities. Investing in a property of any type can be a profitable venture, but you need to know what you’re doing. If you are going to purchase one of these facilities, it’s best that you take a good hard look at what lies ahead. Here are 10 things to know care home investment properties in 2018.

Are you simply going to be owning the property, or are you going to be running the business? Either way, you might be the one making many of the important decisions as you get your business of the ground. You can leave it in the hands of a competent staff, but you need a solid business plan and of course the right financing.

Those are two of the important tips that should be considered as you become an investor in a care home facility. Your facility is going to need to be licensed. The license you get for your care home is going to have everything to do with the type of facility.

If the building you’re purchasing has not already been operating as a care home facility, then you’re going to have to take a close look at certain standards. Everything has to be up to code, and of course the proper zoning must be in place initially. Is the location a good one for the facility?

Do you have the funding in place already? If not, you’re going to have to look into that for sure. As an investor, you want the funding and financing taken care of ahead of time.

As you move forward and are preparing to open your doors, you’re going to have to address staffing concerns. At the very least, you’re going to have to hire someone to oversee your operations. If you do that and delegate the rest of the human resources department, then your work is done in regards to staffing.

You still need that solid business plan first though. And you need to look into ADA compliance. It was mentioned that you need the funding in place, but that’s just the beginning in terms of business finance. You have to think about your ongoing operations and financial picture, too.

Consider the future of the property as well and what you would like to accomplish. Even if you aren’t overseeing the operations of the facility, you need to have set goals. You can communicate those goals to the person you’ve chosen to oversee the operations, and you can help ensure those objectives are realized over the long term.

Think about the care home properties that are available as investments. You can always build one, too if it makes financial sense to you and you’ve found the right location. Count on these 10 things to know care home investment opportunities in 2018. Having a solid plan in place that addresses all aspects of the investment you’re making is what you need to be focusing on right now. Once you have the green light, it’s time to put action to your plan.

Are Retirement Homes a Good Investment If You Are A First Time Investor?

Numerous retirement properties have been built over the last few years. If you have been thinking about investing in one as you get older, then this is definitely the best time to do so. The big question is, are retirement homes a good investment?

Retirement properties may be purchased for investment or retirement purposes. Owners can let out their property to earn rental income before they are ready to move in. Alternatively, owners can purchase these properties with the aim of downsizing and moving into a home built to accommodate aging occupants.

As an investor it’s only normal for you to question the financial viability of owning a retirement home.

Read on below to find out the answer to the question, ‘Are retirement-homes a good investment?’

Cost Saving Benefits

People facing advanced age usually experience mobility issues. This makes living in a standard home quite a challenge. Upgrading such a home to facilitate increased mobility or enhance safety levels can be quite costly. Retirement homes on the other hand are built with all these issues in mind; they come with specific solutions and design changes meant to comfortably accommodate ageing residents.

By choosing to invest in an outright retirement home, you get to avoid the costly alterations that would be needed to make your current home safer and more comfortable, considering the needs of an ageing occupant.

are retirement homes a good investment

Financial Benefits

Assessing the financial benefits associated to an investment is one of the best ways to judge its viability.

First and foremost, investing in a retirement home gives you the opportunity to downsize. This may end up saving you a lot; and as such, enable you to leave more equity to your surviving beneficiaries.

Alternatively, you can use your retirement investment property to generate rental income. Before you move in to the property, you can let it out and generate some income. If you never want to move in to the retirement home, you can use these earnings to meet the cost of living elsewhere.

Growing Demand

Although the retirement property market is somewhat separate from the mainstream real estate market, it is still influenced by similar forces of demand and supply.

The UK’s ageing population has worked to boost the demand for retirement homes. Although this demand is not as strong as the demand experienced in the mainstream market, investors can expect the value of their investment to appreciate with time.

This demand also means that the rental income earned from the properties is bound to grow over time.

If you have been asking yourself the question, “Are retirement-homes a good investment?” reading the above should leave you with a clear idea of the answer.

Investing in Nursing Homes – 5 Easy Rules for Investors to Follow

investing in nursing homes

There is a lot of money to be made in the retirement home sector in the UK in the coming years. This is because the baby boomer generation has now reached retirement age and their large numbers mean demand for nursing home places is likely to continue to increase. So, if you are looking for some lucrative investment opportunities, you should definitely consider taking a look at the care home industry. With that in mind, here are 5 rules for investing in nursing homes:

1. Location Is Key

When it comes to developing a new nursing home, the location is very important. You need to take into account many different factors. For example, how far away is the nearest hospital? How easy will it be to find employees that can travel to the location? What is the demand for nursing home places in the area like? There really are a lot of questions to ask.

2. Invest In Staff Training

Without good employees, your home will not get a very good rating and thus you will struggle to attract new clients. In addition, if you fail to invest in adequate staff training, you risk future lawsuits if your nursing home fails to provide expected standards of care. You might think you can save money by using agency staff, but you have to keep in mind that such staff have no loyalty to your business.

3. Secure Government Funding

While many nursing homes make most of their money from private patients, it is always a good idea to reserve some places for patients that can help you secure state funding. The UK government is currently throwing a lot of money at care home providers and to maximize your returns you need to ensure you have access to some of it.

care home investments

4. Diversify

As with any type of investing, diversity is key if you want to minimize your risk. This means you could consider offering a mixture of elderly daycare and residential services. You could also think about reserving some places in the nursing home for younger clients with long-term disabilities.

5. Lookout For New Opportunities

All good investors are continually looking for new opportunities to capitalise on. You don’t ever want to become complacent with any nursing home investment. You need to be continuously looking for new development and expansion opportunities to grow your assets and secure your future.

In this article, we have briefly touched on 5 Rules Investing in Nursing-Homes to keep in mind when placing your funds in the care industry. There are lots more detailed guides available on the web and it’s important that you take time to seek them out. There are many people who have a lot of experience and knowledge in the field who are willing to share what they know with new investors. If you are willing to learn, you should do well when you invest in the elderly care sector. After all, people are living longer than ever and everyone needs care once they reach a certain age.

The 5 Things You Most Likely Didn’t Know About Retirement Home Investment Opportunity in the UK

As you get older, you may want to think about your living situation, especially as you get into your mid to late 50’s. The reason for this is because there are many retirement home communities available that are a great option for senior singles or couples. It is even more important for those that don’t have any immediate family to help them as they get older and need assistance. So, with that said, we will now look at 5 things about UK retirement home investment opportunity that will help you to make a decision.

The first benefit of investing in a retirement home is that they are typically located in beautiful and picturesque areas that are a joy to live in if you want a slower pace of life. The South West of England is a popular location and you can enjoy living near to a park or even the coast. Living in these areas are quite relaxing and is not only beautiful to look at but excellent for relaxation and improving your overall health.

Next, there is a financial incentive of purchasing a retirement home, especially since you will be downsizing and be able to distribute your wealth and equity with your family. This is a great way to take care of your family even as you grow older and when you die. In the event that you’re not sure about moving into a retirement home, you can still purchase it and rent it out.

Thirdly, by living in a retirement home, you will have many social benefits. Do you know that when it comes to people that are 75 years or older, more than half of them live alone. Also, many older people report feeling very lonely and that their only source of company is the television. Loneliness is not only difficult to deal with, but it is also bad for your health. As a result, living in a retirement home is definitely a great idea since there are always events, gatherings and exercises that are done with the people in the community. You will never be short of any friends since you can just come out of your home and socialise as you please. There are even luxury retirement home communities where the meals are prepared by top chefs and there are even wine tasting events etc.

Another benefit of these homes and communities is that there is always care available. As you get older, its no secret that you can get sick quite easily. In these communities, there is always medical help available, so you don’t have to worry. This is especially true as you get into your latter years when you may need a medical aide throughout the day.

Lastly, the properties themselves will not have much wear and tear since only one or two persons will be living in them. As a result, they can last for many years and provide excellent rental income for the family.

In closing we have just looked at 5 things about UK-retirement-home investment that indicate it’s a great investment option. So, be sure to keep these in mind before you decide.

How to Invest in Retirement Homes to Make the Biggest Profits

how to invest in retirement homes

The median age of populations globally is rising steadily. This means that the percentage of people of working age and those who retire financially independent is generally around only 5% of the population. According to Age UK, 14% of retirees in the UK are living in poverty. The number of people in the UK over 65 years of age is 17% and estimated to reach 23% by 2025. This means that the proportion of the ageing population in the UK has been increasing since the 1980’s and by 2040 one in every 7 is projected to be aged 75. The projected number of over-85’s is 1.5 million estimated to grow to 3.6 million by the year 2039.

The above figures translate into an expensive demand for care in the UK and the opportunity for investors to invest in retirement-homes to profits. A person living in the UK who needs nursing care but has less than £23,250 in personal assets, the full cost of care will be covered by the government. This policy applies to care of the infirm and elderly as well as specialist dementia care. As an investment class UK retirement homes provide a good investment opportunity because those who can afford it will pay, and those who cannot, are subsidised by the government.

How to make Direct Investments into the Retirement Home Market

There are two ways to invest – purchase a retirement home suite in a luxury complex for over 65’s; or a retirement home in a home that caters for dementia patients. The retirement home operator will lease the property from the investor on a long lease of 10 years, giving a 10% per annum net yield. These hands-off, high-yielding care home investments have become very popular because they are fully managed by a care-home operator while paying a regular income to investors. This type of specialist sector is what can offer diversity to the income of investors.

Another element to this is the luxury retirement home sector. Luxury retirement homes generally attract more paying residents aged 65 and over who wish to downsize from larger homes and live in a community environment. There is a high demand for these luxury suites in the more affluent parts of south-western England, like Somerset, where more than 26% of the population is 65 years of age and over.

So the opportunity to invest in retirement-homes to profits in the luxury sector could prove to be a lucrative one, especially since weekly fees have increased by over 50% over the past 10 years.