When it comes to searching for lucrative low-risk investment opportunities in the UK, perhaps one of the best sectors to explore is the care home industry. This is because the future of that sector in the country is forecast to be very bright indeed due to increasing demands for places in residential nursing homes as a result of a large and increasing elderly population. We can all thank the baby boomer generation for that.
Successful senior living investments with minimal spending are currently in abundance in the UK. A simple online search will allow you to find lots of opportunities and the barrier to entry starts at less than £50,000 in many cases. How is this possible? Well, you don’t actually have to buy an entire nursing home, you can just buy a unit/room within the home and collect the returns from a commercial lease. You don’t even have to worry about covering maintenance costs as most opportunities are managed by investment firms.
The expected average returns on single units are around 10% net per year. In addition to this, your unit could appreciate in value as demand for land and real estate continues to increase. Releasing funds from your investment is relatively simple, but you should think of it is a medium-to-long-term asset. Buyback options are typically only available after 5 years, but it is possible to transfer ownership to an independent investor at any time. Just make sure you read the terms and conditions of any investment carefully, so you know what you have signed up for.
It is important to note that as with all investment opportunities, however, there is some element of risk involved. So, you should not use funds you can’t afford to lose. Brexit is looming and it would be wise to remain wary of its potential short to medium term negative impact on the whole UK economy.
Keep in mind that life expectancy rates are likely to continue to rise, which means people could be spending more years in elderly care. This means that demand for places in residential nursing homes is most likely going to exceed supply driving prices up. This will be great news for all people that currently hold an investment in the retirement care sector.
International clients can also take advantages of successful senior living investments with minimal spending as many companies in operation in the UK work with investors who are located overseas. Many of these companies offer hands-free style investments, so you won’t ever have to visit the UK in person to manage your unit.
In addition, you can take use back buy schemes to release your funds after you have owned a unit for five years. The good thing about these buyback options is that you get around 110% of the initial purchase price, which means you don’t have to worry about holding a depreciating asset. You should always consult with an investment advisor in your home country, however, before sending any funds to the UK. You also need to make allowances for currency exchange rate fluctuations when calculating your potential returns. Good luck!