Hopwood House is advising its community of real estate investors to consider care homes as a potentially lucrative alternative investment opportunity.
In an article for investor portal iNvezz, Mark Burns from Hopwood House says care homes are becoming an increasingly popular alternative to mainstream buy-to-let.
Hopwood House is a property investment specialist with properties for sale around the world including the UK, US and Dubai.
“Demand for care home units is high, with good-quality new developments filling up fast. Plenty of new developments are being built, creating plenty of opportunities for investment, yet demand remains ahead of supply and as such returns are strong. Rental returns can be up to 10% annually, and this excludes strong capital growth potential as the UK’s average age continues to rise,” Mr Burns writes.
However, he does go on to point out the potential risks of investing in the sector. “Investors should not make the mistake of thinking care home investments are risk-free or that buying any care home unit is an instant ticket to success and profit. Care homes are tasked with caring for some of societies most vulnerable people who are also valued members of families, so even with demand so high a care home can be ruined by a bad reputation.
“Furthermore, managing a care home successfully is a complex and highly specialised task. It is therefore important when minimising risk to ensure you invest in a home that will be operated by an established provider with a good reputation and existing track record of success,” he concludes.
Hopwood House is currently promoting the opportunity to invest in a new build care home in Gateshead .
The property, which is managed by St Carrillus Care Group, offers investors the opportunity to invest in the growing demand for registered care bed places throughout the North East.
Hopwood House says the project offers investors a 10% net return assured for 10 years, the new Gateshead Care Home Project also offers investors an assured developer buy back at the end of years 5 and 10.