We know that your investment is a big deal. You have worked hard to be able to put some money aside for an investment, and you certainly don´t want to pour it into the wrong asset. You will want to ensure that you have made the right investment, in the right asset, in the right location.

So why do we feel care home Property is a good investment? Following our tips below, we will explain why we feel the Investment is viable, and we will aid you in identifying a great care home property investment.

Choose a high demand area

The first thing to do is to identify what the demand for each property type is in a particular area. For example, when looking at investing in student property, you wouldn´t identify an area with little to no universities, or an area that has already fully catered to student housing needs.

This idea translates to care home properties. When investing in care home property, naturally you are not going to target major cities with young populations. According to a report carried out by Centre for Cities, the youngest cities across the UK are London, Oxford and Luton, so these areas should of course be avoided.

When retiring, most people tend to settle in quieter villages, so geographically a sound care home investment would be out of the cities. It is worth noting that some cities, such as Blackpool and Bournemouth, have an average age of over 40, so it can also pay to invest in care home properties in a city. However, this must be done with caution, and by identifying the current supply in the area.

Identify undersupplied areas

Now that you have identified areas with high demand, you should be looking also for limited supply. Ideally, you will identify areas with high demand and low supply, to increase the probability of your care home investment being sought.

You will also benefit if this area is identified before others have recognised this. This is because developers recognise the potential for lucrative returns and create rival investments, potentially hampering supply of your own investment.

You must also identify the barriers of entry. For instance, areas in Devon have a large number of national parks and areas of outstanding natural beauty, which cannot be developed on. Restrictive planning permissions may also be applied to developments near this area, limiting the space to be built upon. Consider though that this could potentially limit competition from other developers.

Be unique

When looking at care home developments, choose a property you feel will be unique and genuinely desirable. For instance, choosing a development that focuses on luxury facilities will stand out from the typical offerings.

Providing a higher standard of service will help the development stand out in the right ways. Examples of luxury can include providing higher levels of nursing, dementia care and an ever-evolving personalised service to meet each individual based on their needs. Have peace of mind in knowing that the property you are investing in is also providing a high standard of care to its residents.

Choose a sustainable development

Having carried out your due diligence and selecting a unique investment in a high demand and under supplied area, you must lastly assess the longevity of the investment. A good example of this would be evaluating a care home abroad.

You may have identified an area in France, for example, which accommodates to retired British expats. Just like hotel room investment risks, the effect of Brexit may have a huge impact on the future potential of the investment. If you are looking for a long-term investment, you have to think about the long-term economy in the area.

The benefit of investing in care homes in the UK is that we have an ageing population, with this set to continue going forward. According to the Office for National Statistics, the number of over 75´s is meant to double by 2040 to over 10m. On top of this, global real estate consultants Frank Knight estimate that over 60´s in the UK alone have over £1.2bn in unmortgaged housing wealth with this figure always rising.

It´s time to invest

It is a fantastic time to invest in UK care home property. FJP investments have over 5 years’ experience of working in property investment and have built up a fantastic portfolio of property investments and clients alike.