There is a shortage of care homes in the UK, which has created investment opportunities as the population rises and more ageing people need support and care.
Governments are incapable of meeting up with the growing demand for retirement villages and care homes. In the next 25 years, the amount of old folks is expected to increase by six-fold and on in every 12 people will be aged over 80. This is because of the improvement in the healthcare sector thereby making people live longer.
With the increase in the ageing population, there is also an increase in the demand for health care home. According to the Lancet Public Health Medical Journal, about 2.8 million retirees over the age of 65 will need social care and nursing homes by the year 2025; an increase of 25% from the year 2015. Most countries are struggling to balance their yearly expenditures and running deficits. Cuts to public spending mean that there are not enough care beds to nurse the ageing patients, even for the UK which has a free health service. So, what will happen if the demand for nursing homes increase while the shortage of care homes also increases?
Care Homes as a Place to Avoid Loneliness for the Elderly
Most elderly people choose to live in apartments in care homes just because of the social aspect of it. Those whose children have fully started their lives and no longer have a spouse often miss day-to-day chitchats. About 31.4% of the people over the age of 65 attributed television as their main company while 8.5% of the people often or always felt lonely.
Retirement homes are always placing where the elder lives and thrives socially. Care homes play their parts by organising regular social activities for their inmates such as games, wine tasting, parties and sometimes walks along the sandy beach to stimulate their patients’ interests while giving them the opportunity to mingle with one another. So, the shortage of home care means difficulty in making the aged feel that they do belong somewhere.
Why You Should Invest in a Care Home?
There are an estimated 12,525 residential homes and 5,153 nursing homes in the UK. This may sound considerable but the shortage of care homes is on the rise because of the increase in the population of the elderly. This makes it one of the fastest growing sectors not only in the UK but in the world. One can purchase a care home in the UK for the elderly as an investment. In this instance, the care home operator will lease the property back from you as an investor at net yets which could sum up to 10% per annum. The care home operator basically runs your business from the site and help you rent the property on a long lease of up to 10 years.
Care home investments are high yielding, hands-off investments which have been popular among investors both at home and abroad. This is because they are fully managed and they pay regular incomes to its investors. It is an opportunity for those looking for ways to diversify their streams of income.