New Year, New Investment Strategy - RB Care Homes
CHESTER, England, December 11, 2018 /PRNewswire/ --
The new year is just around the corner, and it's time to talk about investing. There has been a growing demand with investing in the health care sector, and 2019 is already looking promising. Investing in specialist care is considered to be one of the fastest growing sectors in the world, consuming more than 10% of the GDP in most countries. The demand within the UK market is predicted to reach 60% by 2032, thus projecting the ample opportunity for care home investments in the coming year.
The opportunity to make high returns from care home investments surfaces from the lack of supply in the health care sector. The industry is in desperate need for external investment. In the, 'Ready for Ageing?' report, published by the House of Lords, the United Kingdom is described as 'woefully underprepared' for the rapidly growing elderly population. The report further demonstrates the substantial implications if vital action is not taken. The reason for the urgent need for external investment derives as a consequence of the £2.45 billion NHS Trust deficient in 2016. Since then, there has been a ripple effect on not only the lack of supply of vacant spaces available, but also on the quality of service provided. This is reflected in the results of recent inspections, where the Express revealed that 247 out of 642 care homes that underwent CQC inspections were rated 'inadequate' or 'required improvement'.
In regards to making a return on your investment, the rapidly ageing society means that there is not only a drastically growing demand - but ageing is an inevitable occurrence and health care is a necessity. Therefore, this means that there is a growing demand in this market, especially considering that people tend to live longer now with the developments in medicine, and after certain ages there is an increase in chronic, long-term health requirements. In addition to the growing demand, as a result of the growing population, spending on healthcare is significantly increasing as well. Healthcare is the biggest expense for senior citizens and it is also in consequence the largest expense for the global economy. The Organisation for Economic Cooperation and Development state that spending on healthcare will rise to 14% of GDP by 2060 - not only is this opportunity an ethical and recession-proof investment, it's also looking very promising in the coming years.
Care homes as an alternative investment is a great way to diversify your portfolio, as well as a well-calculated investment to make in 2019. It isn't just individual investors who are interested in what the care home market has to offer but corporations have also identified the opportunity. Metro Bank's Director of Specialist Services, Roger Fenwick, disclosed that the bank has identified the growth opportunities in the specialist area of the care market in particular. Fenwick expresses that Metro Bank has assessed the dynamics of the market like over demand, undersupply and old stock, and agree that there is definitely opportunity for investment within the market with long-term demand.
So, why specialised areas of the care market? Age UK's publication 'Later Life Care in the UK' reveals statistics of 11 million people aged 65 and over living in the United Kingdom. Of the 11 million, it's predicted that 773,502 are suffering from dementia, and in need of specialist care. Currently, there is approximately 5000 nursing homes and 12,500 residential homes in the kingdom - evidently not enough to provide proper healthcare for those in need. With the growing elderly population, it is predicted that there will be an increase of 80% in demand for health and social care for people with dementia in the years 2010-2030.
Fenwick agrees that Metro Bank "see health and social care very much as an opportunity and so are investing heavily in having the right representation to cover those markets". It is important with such investments to have someone who has insight to the market and can provide well-calculated opportunities, in order to make the most of one's investments and get the highest returns. HyLife Investments offer these valuable opportunities, some of our care home investments are listed below in order to provide some insight as to what kind of prospects are available.
It's undeniable that the future in care homes investment is looking very promising. In regards to the investment opportunities offered by HyLife, the location is a crucial indication of a well calculated investment prospect. Care home investment opportunities in Wales are preferred by HyLife because of the high yields and recent governmental changes. As of April 2019, care savings limit in Wales will increase from £30,000 to £40,000 meaning that there will be more people who will be eligible to receive care from the authorities. In comparison, people in England who have savings or assets of over £23,500 need to fund their own care. HyLife Investments work hard to ensure we provide bespoke and well-calculated investment opportunities to our investor network.
Contact: james@rbcarehomes.com
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