Multi-sensory garden to promote health and well-being
Excellent location in Greater Manchester
Experienced specialist care home management team in place - protecting your investment
Reserve for £1,000
Property in the care industry has long been a popular and profitable asset class for institutional investors, however this new model - allowing the purchase of individual rooms within a care establishment makes for a lucrative and affordable opportunity for individual investors.
This care home investment opportunity is meeting a growing demand for high quality nursing and dementia care facilities across the UK. Demand for UK care home spaces is expected to increase by at least 40,000 new places by 2020, and with much of the existing stock substandard, it is clear that the need to the investment is great.
The need for a care home with the facilities and extra care capabilities this Care Home is able to offer is greatly needed within the UK especially within this area, with the need undoubtedly continuing to grow rapidly over the years to come. Demand for care homes is expected to increase 60% by 2023 and 150% by 2043 due to an ever ageing population.
This facility is already built and operational in Greater Manchester.
The developer has eleven developments in total within the UK care sector within facilities that are all built to the dementia standard being the highest standard set.
Six of these developments are already built and operational which the developer owns and operates through their own in house management team
One of these facilities which we originally sold off-plan is now nearing completion with the doors opening for new residents in Q2 2016.
The remaining four facilities are either new builds or refurbished with all works commencing by Q2 2016.
Most developers simply develop a facility, make a quick development profit moving onto the next, leaving you with a third party management team which you are relying on.
This developer makes next to no development profit, they make their profit through the operation of each facility with their own in house management team - like each investor the developer has a long term vested interest in each of their facilities. The long term sustainability matters to them as much as it does you.
The developer and operator in question is the only one within the UK to have this business model for investment reviewed and signed off by the Care Quality Commission who is the governing body within the UK that regulates all care facilities.
This is the exact location of the property development.
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Spanning almost 500 sq miles in the North of England, Greater Manchester includes such vibrant boroughs as Manchester, Salford, Bolton & Wigan. As recorded in the 2011 census, the population of the county was 2.68 million and growing; of this total, 389,749 are aged 65+.
The Greater Manchester area comprises a total of 2,682,528 people, of which 389,789 (14.5%) are over the age of 65. This figure is anticipated to increase slowly until the end of the decade, and then grow rapidly to the end of the 2020s with an average growth of 1.8% per year
The majority of people living in residential or nursing homes are permanent; a sizeable number of older people already living in care homes may live for another 10 to 15 years. With an increase of elderly people in the population and people living longer on average, this is expected to put an added pressure on local services and generate additional demand for new, high quality care facilities with a dedicated team of care professionals.
89,783 people are currently living with dementia in the North West, more than 29,500 of which live in Greater Manchester2
Over 3,000 people have been diagnosed with dementia in the past year in Greater Manchester3
There are over 850,000 people living with dementia in the UK today, this figure is expected to increase to 1,142,677 by 2025, this is more than the population of Birmingham, the UK’s 2nd largest city. This figure is also anticipated to grow to over 2 million people by 2051
Care for the older population is already generating an income of £14.5 Billion for the UK economy every year and demand is expected to continue to grow exponentially in coming years
1. After a full consultation process with your sales consultant, you will select your preferred unit and complete a reservation form, along with securing your unit with a £1,000 reservation fee.
2. Within 7 days, you are required to send certified ID documents along with source/ proof of funds for the unit to be secured and assigned to you.
3. Contracts are issued to your lawyer for review. You and your signatory witness, then sign the contract and return it to your lawyer using a secure, signed-for delivery service. At the same time, you pay the outstanding balance of purchase monies into your lawyer’s client account.
4. Upon receipt of your documents and balance of purchase monies, exchange and completion can take place. Your lawyer will then attend to all registration formalities with the Land Registry. Omitting delays, the purchase process should take no longer than 28 days from the point of reservation.
Unlike a traditional buy-to-let, you are not responsible for: monthly property management fees, property maintenance, refurbishment or any tenant related issues, including vacant periods that may result in a loss of earnings. This opportunity provides a hands-off, hassle-free, income generating asset.
As with any purchase, you should be aware of any exit strategies. Through this unique structure, there are a number of exit strategies available to you.
1. At the end of the 25-year term, an assured buy back will be initiated whereby the developer will purchase the unit back from you at 125% of the full purchase price.
2. You have the option to sell your unit on the open market at any given point.
3. Should the developer initiate the freehold sale of the facility to an external operator at any point from your exchange process, you will receive your full callback 125% fixed agreement.
You are able to offset your total capital outlay from £70,000 to £63,000 by offsetting 7,000 against your first 1 year’s rental income.
In years 2-25, you receive circa 8% of the purchase price value (£65,500), giving you a fixed return of £5,240 per annum.
Purchase price: £70,000
Client cash input: £63,000
Reservation fee: £1,000
Balance of cash deposit: £62,000
Assured tenancy period: 25 years
Rental income (circa): 10%
Rental income per annum: £7,000
No. years deducted from purchase price: 1
No. years annually in arrears: 24
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