What Are The Advantages of Care Home Property Investments?
November 1, 2017
A care home investment can be a stable way of earning a monthly rental income through a property investment. It is a long-term investment has great potential for high returns as well as providing the elderly who need specialist care with a luxurious place to stay.
What Is Care Home Investment?
Care home investments are a bit different to other mainstream types of property investment. This is because it is considered to be a commercial property, however it is used as domestic residences for private individuals. Therefore, these investments benefit from the currently high demand for UK residential property.
An investor will purchase a unit in a care home. This usually consists of a en-suite type of room like a hotel. Care home units on average range from £60,000 to £90,000 each. The care home will find elderly tenants to occupy the unit and the tenant will pay rent like a traditional buy-to-let. The NET yields for care homes are 10%, which is one of the highest yields out there on the property market. They are also long-term, and the contract can last up to 10 years.
The Advantages of Care Home Investments
Care homes have several benefits over other more traditional types of property investments. If you have a portfolio full of residential buy-to-lets and you want to diversify your portfolio to spread your risks, then a care home property can do that for you. Even if you are a new investor and are looking for a long-term investment, or a place to live in retirement, then a care home investment could be for you.
Long-term investment – Care home investments last up to 10 years. After the 10-year mark, you have an optional buy-back option to sell the property back to the care home. Additionally, you can renew your contract with the care home company if you wish to keep investing for a monthly rental income.
The high demand – The number of over 65’s in the UK is increasing. The ageing population is creating a higher demand for privately funded care home properties. These numbers are forecast to grow in the years to come, making care homes a low risk investment.
Diversify your portfolio – You can spread your risks by investing outside of buy-to-lets.
Less risky than relying on the property market – The fluctuating and volatile property market can have bad effects on residential properties, but care homes don’t rely on the property market, allowing buffer time during property market dips.
Low maintenance – The care home will be managed by the staff hired by the care home company. The residents in the care home will also be taken care of by trained carers who are qualified in health and social care. You won’t need to get involved with the maintenance or patient care or the costs involved.
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Top Private Funding Advantages You Need To Know About
July 25, 2016
Obtaining a grant fund for your business often determines the success or failure of your project. Some people struggle because they don’t know the ins and outs of each type of fund and can miss out on something they never even knew they needed. There are different types of funds, but this article will be going over the advantages of grants and funds, more specifically, private funding and public funding.
Private Funding Does Not Need Multiple Approvals
Possibly one of the biggest advantages of choosing a private funding company is that the grant recipient normally doesn’t need to wait for multiple authorisations from an intrusive management system to receive their awards. This makes the waiting time a lot less strenuous and it is a quick option for those who need funding in the short term.
Applying for a Private Fund is Easier
Private grant funding has a simpler qualification process and can potentially be quicker for the recipient to obtain their awards as opposed to those of public grants. For instance, a private fund may not make it a requirement to have a lengthy proposal to receive the grant money, whereas public grants more often than not require a lengthy proposal and an in-depth explanation as to how you plan to use the funds in order to receive grant money.
Fewer Applicants for Private Grants
With fewer people applying for private grant funds, there is an increasing chance that you will receive a grant reward for your proposal. Public grants funding agencies receive many applications, but due to the nature of a public sector, only a select few can be chosen to fund.
Although private funds are the more intuitive way to go if you want a grant quickly, like anything, there are downsides. Since private grant institutions are not held accountable for their actions by other legislatures and voters, applicants may get turned away and face problems with project support. The institution also has no responsibility to tell you why they denied your proposal, which is a requirement for publicly funded grants.