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Why Care Homes Make for Excellent Investment Properties

Why Care Homes Make for Excellent Investment Properties
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Finding the right investment can cause your assets to soar in value and your returns that reach the exceed professional expectation. Even if you don’t realise it, a large number of investments are influenced by trader tips and broker how-to articles. 

As well as helping you to find an appropriate investment for your level of funds and risk management, a professional trader or broker will be able to handle transactions you choose to make. Although there is a large range of investment opportunities, many people feel that buying property is the safest way to maintain the value of their capital and minimize the risk involved. 

If you’re thinking of investing your money but you’re not sure where to start, take a look at these top tips for why care homes make excellent investment properties:

They’re in constant demand

Providing the care home you choose to invest in is well run, it’s likely to remain in operation for a significant period of time. As the average age of the global population rises, more people are in need of specialist care. This means there is an increased demand for care home places and residences. 

Choosing an investment opportunity that you know will be in demand can mitigate some of the risks and help you to leverage your risk as you see fit. While there’s no guarantee that an investment in a care home will offer high returns, the consistent need for their services could mean you’re on to a great opportunity. 

Hands-off investment opportunities

When you invest in a care home or retirement community, there’s no need for you to get involved with the day to day management of the site. Even if you own the land upon which the care home is situated and the building itself, you can still hand over maintenance responsibilities to the care organisation that leases the space from you.

For investors who are looking for a hands-off opportunity to invest in the property market, getting in while the need for care homes is about to rise could be a savvy decision. As an investor or developer, it’s likely that your contract will make you responsible for the initial fitting out of the building. Take a look at this website if you want to find out more about the fixtures and amenities that are available. 

Following the initial fitting out of the building, with amenities such as mobility bathrooms, wheelchair accessible rooms and medical equipment, you can step back from the management of the site. While other property investments can require on-going problem-resolutions or high property management fees, handing the reigns over to your tenant means you won’t incur any additional expenditure or be expected to dedicate any time to the management or maintenance of the home itself. 

Fewer regulatory obstacles

Property has always been a popular choice amongst investors because most people believe your money will be relatively safe if you invest in bricks and mortar. With the buy to let industry taking off at a rapid pace, many people have taken advantage of the opportunity to boost their income and increase the value of their assets by buying properties and renting them out. 

However, governments have gradually grown wise to the tax loopholes this presents and sought to prevent them from being used. With varying tax liabilities for landlords and strict licensing regulations for houses of multiple occupancy (HMOs), investing in these types of properties may not provide the return you’re looking or the stress-free, hands-off investment you’re planning to benefit from. 

In contrast, care homes haven’t been subject to the same scrutiny in terms of tax liabilities. While there are, of course, stringent safety requirements which must be adhered to, care home operators can still use a variety of tax breaks to reduce their liability and increase their profits.

While many people assume that the increased regulation facing buy to let investors have rendered property investments unattractive, you may simply need to find an alternative type of property to invest in. By choosing to plough your money into care homes, you could reap the rewards as the service becomes increasingly popular. 

When is the Right Time to Invest? 

Knowing when to invest is critical to making as much revenue as possible and protecting you against the risk of losing the sum that you’ve laid out. As investments can drop as well as rise, it’s important to seek independent financial advice before you make any decisions regarding where to invest your money. With expert knowledge from experienced professionals, you can find out which deals are being predicted and hedge your bets accordingly.

However, it isn’t just the market you need to mindful of if you’re planning to make any type of investment. You’ll want to ensure that you have access to other funds if you require them. By streamlining your personal finances, you can ensure that you’re well-placed to make an investment, whether it’s for the short, mid or long-term. 

 

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