With the supply of retirement homes predicted to fall from 456 400 beds to 444 700, in the UK, and whilst the population of over 65´s is set to rise by rise 1 million to 11.4 million, there will be an acute shortage by 2020. Therefore, it is becoming a more attractive investment opportunity with a view to generating medium to long term profit on investment.
Privately funded in mainly affluent areas such as the South East and South West of England, nursing / care homes are doing very well,
Investing in a retirement home is seen as a sound investment move because you are investing in an area of the property sector which is considered to be in high demand with diminishing supply. You could have the opportunity to purchase a care studio within a care home on a 125 year leasehold basis. The care studio will then be managed for you and in return you will receive a fixed income.
The Process of Investing in Nursing Homes
Step 1: Due Diligence
The company identifies suitable properties in affluent towns and regions.
Step 2: Purchase
Following a satisfactory outcome of due diligence, and provided sufficient funds are
available, investment monies are used to acquire the property.
Step 3: Development
The properties are renovated into 5-star luxury care accommodation using permitted
development rights where possible or the equivalent full planning requirements.
Step 4: Operation, sales and lettings
Upon completion of works the property is registered (or re-registered, as appropriate) with the Care Quality Commission (CQC) for the provision of residential, nursing and domiciliary care services. Comprehensive regional marketing and sales campaigns are then launched to secure sales and lettings on individual care studios and achieve/maintain target occupancy levels.