The UK’s ageing population combined with a relatively low supply of nursing homes has created a one of a kind investment opportunity. Investors can take advantage of this situation to purchase nursing homes that they can then lease back to the elderly care provider in exchange for regular rental income.
By choosing to how to invest in nursing homes with buy-to-let-experience, investors also open themselves up to reaping a handsome reward in the form of value gains at the end of the lease period as the elderly care provider offers to buy back the property at a premium.
To help you better understand the ins and outs of investing in nursing homes with only buy-to-let experience, read on below.
Investing in a nursing home with a buy to let experience gives the investor the opportunity to collect rental income on the property for the entire lease period. As previously stated above, these investment opportunities earn investors a regular rental income.
To earn this rental income, the investor purchases the nursing home property and then leases it back to the nursing care provider. The provider then lets out the property to elderly persons who are in need of special care and accommodation. The care provider remits rental income to the investor as per the predetermined schedule.
It is also worth noting that the amount of rental income investors can expect to get from their investment relies on the nature of the property and tenant. For instance, elderly persons who are in need of a luxury service are bound to pay more than those who are interested in a standard elderly care service.
Gain In Value
Investors can also gain more from their investment if they choose to take advantage of the buy-back clause included in the lease agreement. In agreements, the care provider guarantees that they will buy back the property at a premium after the lease period is over. This not only guarantees that the investor gets a handsome pay check at the end of the lease period but also provides them with an exit plan.
Choosing to invest in nursing homes is emerging as a great alternative to investors, especially considering the low interest rates offered by banks on customer savings. Since these properties are developed in areas where supply is low, while the number of elderly persons in need of specialized accommodation and care is on the rise, their demand is more or less guaranteed.