UK Care Home Investment – It Will Look After You When You’re Old!

UK Care Homes InvestmentCare homes are not something I like to think about too much, they are the last place I would want someone to put me in when I am old.

The subject came up at a dinner party I was at recently. Some friends and I were discussing what we would do with our time if we were to retire early. Someone mentioned spending it in a care home, however as my mother always says, you won’t see me in one of those!

So whether the care home is good or not so good, you wouldn’t want to put yourself in one, although it has to be said, there is a strong case for investing in a quality care home – even if you don’t plan on being in one.

If we look at care homes purely as an investment they may not be as glamorous as a Florida Villa with Pool or as tempting as a discounted apartment investment in Istanbul – what they are is a relatively simple means to gain a very good return on investment  over the medium to long term.

If we put the Zimmer frames to one side for the moment, it is possible that an investment in a UK care home could well fund your retirement in a more glamorous setting, where the sun will keep those aches and pains at bay for a few more years at least.

Care and Nursing Homes are the latest emerging asset class to offer a solid hands free return on investment without the usual hassles of a traditional buy-to-let investment.

The number of older people in society is rising rapidly as people live longer and the inevitable expansion of this older population means we are seeing a corresponding growth in care homes. Yet not enough of them are being built – meaning that there will be strong competition.

According to the Office for National Statistics the number of people aged 65 and over is predicted to rise by nearly two-thirds by 2031.

They also predict that the number of people aged over 85 years will increase from 1.3 million in 2008 to 7 million by 2081. Now that is a lot of octogenarians for the number of good care homes we have at the moment.

There are currently around 24,000 care homes in the UK and this number will need to more than double in the next 25 years to satisfy demand. This will create conditions where the best care homes will generate much higher returns for investors.

Guy Hands boss of Terra Firma, who is more famous for rock and roll, bought record label EMI for £3.2 billion in 2007. After losing all their money on that, they have turned their attention to Four Seasons, the UK’s biggest care home group.

I can only assume that Terra Firma would have been more cautious this time around. This tells us that UK care homes are less rock and roll and will be around longer than some of those rock and roll artists at EMI.

As I often say to my investor friends, if you want a hands-off rocking chair investment that is fully managed and recession proof, then care homes are worth a look.

Click here to review UK Care Home Investment.

Are you more rocking chair than rock and roll when it comes to investment? Please leave your comments below.

Kind regards

Loxley McKenzie
Managing Director

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