Benefits of investing in Care Homes

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Across the globe, care home investment has emerged as one of the most preferred property investment vehicles among new and experienced investors alike. In the UK, the population of senior citizens is increasing steadily, and that’s the key reason why this investment option has a significant growth opportunity.

According to the ONS (Office of National Statistics), 20.7% of the UK population will be aged 65 years or more by 2027. As a result, there will be a significant inconsistency between the present capacity of care homes and what’ll be required within the next 5 to 10 years. To fulfil the lack of care homes and meet senior care needs efficiently, there’ll be a massive demand for care homes in many areas of our country.

Additionally, life expectancies are growing steadily, thanks to the increased awareness of the benefits of adopting healthy lifestyle habits as well as the advancements in modern medicine. The increase in life expectancies is also giving a sharp rise in the demand for care homes where highly-dependent elderly people can spend the rest of their lives.

From an investor’s perspective, care home investment brings a hands-off yet highly attractive option to build a healthy property portfolio while ensuring a good rental income.

Key advantages of care home investment

If you’re thinking about investing in care homes but feeling a little hesitant, the following should help make up your mind.

  • Assured rental income: Rental income is one of the most important reasons many investors opt for property investment. By investing in care homes, you can not only ensure regular income but that it flows for a longer tenure than traditional rental properties as well.
  • Fewer maintenance costs: This is one of the major benefits of investing in care homes than investing in a traditional residential property. In case of the latter, at some point in time, you’d need to bear various maintenance charges even if there’re void periods. But care homes belong to the category of fully-managed structures which means the management company will be responsible for taking care of the entire maintenance aspect. As an investor, all you’ll need to do is enjoy the rental yields because the tenanting process will also be handled by the care home administration.
  • Buyback options: When it comes to care homes, the resale ability is lower than what is offered by the traditional residential property market. You can sell a residential property to different buyers – from traditional buyers and cash investors to mortgage investors. But since care homes are niche properties, they have a limited resale market. However, many developers offer buyback options to help care home investors overcome this issue. Here, the developers guarantee, through the sale agreements, that they’ll buy the property back from the investor at a pre-agreed timeframe/price in the future. This option essentially makes the exit strategy secure and effortless.

In addition to these, if you belong to the league of investors who want to make positive contributions to society, investing in care homes is one of the best ethical investments for you to consider.

Wrapping up

Investing in care homes can bring above-average returns your way while providing you with the much-needed funding to help build your property portfolio. To benefit from this investment strategy, make sure that the property you want to invest in is located in an area popular with retirees or has a significant elderly population. You can also keep an eye on the areas where new care homes are being built to minimize the gap between high demand and lack of supply. Remember that demand in this sector will most likely outstrip supply always. This means if you can do it right, care home investment could become your most effective and stable source of regular income.

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Reserving Your Property

What Are The Steps?

1. One of our dedicated consultants will contact you to discuss your new property purchase and answer any questions you may have.

2. We send you our Non-Disclosure & Non-Circumvent Agreement and Finders Fee Agreement for you to sign. These standard agreements protect all parties involved from disclosing confidential information about the vendors and the deal or contacting them directly.

3. You Pay your Finders Fee. We understand that you may feel uncomfortable paying your Fee at this stage, but this Fee is fully refundable and gives you exclusivity to the deal so that no other buyer can access it.

4. We arrange for you to go and view the property. We believe it is important that you or your representative view the property you are about to purchase to make sure that it is the right fit. We ask that you make yourself available to view the property promptly as most of the vendors are looking for a quick sale and require speed and certainty.

5. After viewing the property, we will discuss your feedback. You decide whether you wish to proceed with the purchase/ rental.

6. If you wish to proceed, that’s fantastic. We will send you a Purchase Agreement and request some basic information: Full name and address of the buyer, proof of I.D, address, and solicitor details etc.

7. If you do not wish to proceed, that’s ok too. We will refund 100% of your Finders Fee. You email [email protected], and we will ensure a full refund within 48 hours of your email.

Sourcers Info

1. Upload Your Property to our Portal

After you have created your User Account, you can proceed to upload your property deals.

2. Assessing your deal

One of our Support Team will review and assess your property and will call you to finalise the details if required.

For us to assess and publish  your property, you will need to upload:

Full Address
Pictures of the property
Floorplans
Videos if available
Comparables of similar properties sold in the area and for sale
Rental comparables

If we are happy with everything, we will publish your property live on our site for waiting buyers to access.

3. Prospective Buyer

As soon as your listing is live, our buyers will be able to view the property details and contact us to reserve your property. Our Support Team will speak with the buyer to formally reserve the property and arrange a viewing. We will liaise with you to fix the most convenient time with the vendor for viewing.  There is a better prospect of agreeing on a sale if the buyer views the property quickly, so we ask that you are flexible & prompt with the viewing arrangements.  

4. Completing Your Sale

Once the buyer has agreed to purchase your property, our team will manage the process until completion. We are available to assist with all matters to get the deal closed as quickly as possible. 

We are available by email: [email protected]

We are transparent about our fees, and we split the Finders Fee on a 50/50 basis on properties sold.