With banks offering minimal returns on your savings, are there savvier ways to invest your money?
For those approaching retirement age, have you considered investing in a retirement home for your retirement income.
Lots of social activities
Benefits of investing in retirement homes
Retirement homes or villages tend to be situated in chocolate box villages or towns which are popular with an older folk, such as Devon. Here residents can enjoy a slower pace of life with their picturesque surroundings.
More and more people are discovering the benefits of downsizing, after all that big rambling house is no longer required and it’s too much to maintain.
You may not feel ready to move into a retirement village yourself, however you may welcome the additional income. So, even if you decide moving into a retirement home is not for you, now or in the future, the rental yield would be most welcome.
Recent research shows that half of all people over the age of 75 live alone, and one in ten of those aged 65 or over say they feel lonely. Half of all older people consider the TV to be their only form of company.
Loneliness can have a impact on one’s health – research has shown that lonely people are twice as likely to develop Alzheimer’s than those who interact with other people.
Retirement homes regularly hold bingo evenings, coffee mornings, day trips to local excursions, they have Wellness Spa & Gym centres, a restaurant and a library. This gives residents the opportunity to socialise with each other as much or as little as they wish, folk are never lonely in a retirement home.
With the UK’s ageing population, there will always be a demand for residential homes/villages. For those of us who are not quite ready to sell up the family home and move into a retirement village, good rental returns are guaranteed. Leases can be flexible so that they can be passed on to other family members should anything happen to the investor.
The cons of investing in retirement homes
As care homes are limited to the over 55s, there is a smaller pool of potential residents, however with the UK currently having a large elderly population, occupancy levels should be relatively good.
Charges will be payable as there will be management company overseeing the daily running of the care home, so this will reduce the rental yield. However, if the property is purely an investment opportunity it could be a completely hands off investment.
So whether you consider a retirement home for yourself or as an investment, why not look into the facts and figures.
As always any thoughts are always welcome, firstname.lastname@example.org