Nursing homes provide an excellent investment opportunity. Nursing homes offer attractive returns in the cyclical growth market of inpatient care. The demographic development ensures a growing and aging population. In the future, are residential care facilities is an important part of the property market.
According to the Federal Statistics Office, we will in the next 20 years, around 60 per cent more people in need of care and to be determined by about 37 percent in only care places.
Nursing homes as an ideal investment
According to a study by DB Research could by 2050 approximately 44,000 nursing homes are required, at about 4.7 million people in need of care. Thus, 400 new nursing facilities would be created per year. Based on these figures it is clear that nursing homes are an excellent investment.
A suitable Investement are nursing homes also because Indexed leases held an inflationary adjustment. It finally is a cyclical growth market of in-patient care, which carries state refinanced rents for safety. Who puts his attention primarily as an investor on the issue of security, is very well cared for at a nursing property.
Insurance verification rules protect the revenues
The insurance verification provisions of the Social Security Code and a creditworthy and experienced operators provide the necessary security for the event that the residents of a nursing home can not pay. By insurance verification provisions of social support is an indirect state protection of revenue.
Experienced providers offer here even a so-called bankruptcy protection, the investment costs are transferred from the compensation agreement with the social support in the by the operator at the beginning. By the right of separation could be made to the revenue from the compensation agreement in case of bankruptcy of the operator yet.
Restoration residue predicted reduction of nursing homes
Given the high renovation residue and the outmoded facilities (shared room without shower / toilet) in many older homes, one starts from a consolidation of the market and that by 2020, around one in seven nursing home will disappear from the market.
This aspect is at investing in senior housing all the more important as these - like hotels - are particularly dependent on the quality of the operator. In addition, the houses can be affected by changes to the rules of Heimmindestbauverordnung.
As your seniors property will be a success
Other important criteria for investment success with senior real estate experts see that for example, the equipment and the range of services on the situation of the establishment fit. In terms of location, it is also important that in the catchment area there is sufficient demand, and enjoys easy access to the town center are available.
The fact that the demand for care services can not be lumped together, shows a study by the Federal Institute for Building, Urban Affairs and Spatial Development: It predicts by 2030 a significant increase in the cities, regional centers and medium-sized university cities and their surrounding areas.
Here are mainly regions of importance which can expect a relatively strong growth of seniors and have a high proportion of entrepreneurs and officials, as they have, according to statistics from the highest financial and material assets.
Conclusion: investing in nursing homes worth. Investments in nursing homes are an ideal admixture, not only because the state funding a high income security guarantees for investor portfolios.
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