The population of elderly people increasing rapidly all around the World, especially in the UK. And this continuous increase in the number of aged people residing in the UK is causing a few social difficulties. And if there is a larger number of retirees than working people then there will be fewer people to produce the income tax to cover the cost and welfare of caring for the aged. According to a study, 16% of retirees in the UK live in poverty with a household of less than 60% of the average household income.
Currently, people aged over 65 are 17% of the total UK population. and this will increase estimated up to 23.6% by the year 2035. The outcome of this is that there is a huge mismatch in the current ability of the care industry to deliver services to the aged, in comparison to what will be needed in 5 – 10 years from now. What this means is that there is a huge demand for care homes in the UK. Care home investments in the UK by both institutional and private investors have grown distinctly in recent years driven by the significant under-supply of care home beds and the associated high rental yields, high possession prices, and capital appreciation that these investments produce.
In this post, we are going to answer the question “are retirement homes a good investment?” by highlighting some benefits of investing in care homes. Care home market is a huge market and you should definitely take the opportunity to make some good profit here.
As we mentioned earlier that care home market in the UK is huge and also the increase in the number of aged people that is why demand for care home services is increasing. You can generate huge revenue by investing in the UK care home market.
The size of the care home sector is around £15.9 billion a year. This clearly shows that the UK care home sector is truly a huge sector. You can not make only a huge profit by investing in this market but also contribute comfort, longevity, and health to aged people over time by providing them superior service.
One convincing future benefits of investing in a care home that is not regularly discussed is that the investor has the option of living in the unit themselves at some point, sooner or later. Investors can enjoy the rental revenue made by investing in a unit until they choose to either move in themselves or sell the unit. Investors can still obtain the financial benefits of a care home investment for various years, even if they do not choose to move in after their retirement.
The investor has no need to worry about the maintenance of the care home it is covered by the care home operator himself. Investors only need to sit back after writing the first cheque and enjoy the rental yields because care home operators also deal with the tenanting process and making the investment hands-free. Property operator will also deal with the tenanting process and making the investment hands-free.
At Valor Real Estate, we feel happy with helping investors get a solid start in the UK Care Homes Sector. We enjoy speaking to you about your long-term goals and ambitions in property investment. We have a list of care homes investment opportunity including residential care homes and nursing home investment opportunities in the UK.
Contact us and book an appointment with our care home investment consultant to start investing in the huge market of the UK.