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Care Homes

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w885sl

New Member
Geoff - Care home is an asset class that will have a continual demand. Watch out the new regs and the impact on the profits. I am exploring options to diversify from standard buy to let. Care homes is definitely on cards - don't mind partnering.
 
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Geoff Spires

New Member
Thanks, I am still in the investigation stage with Care Homes and am developing my own Due Diligence / Essential Criteria check list for investing in Care Homes.... I feel this is important ground work. I have one buy to let property in England and will only be ready to invest again mid 2021. I am currently resident in Cape Town and will only travel to UK again next year.
 
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diyhelp

Active Member
Interesting - is there also potential for capital appreciation?
 
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Longterminvestor

Administrator
I am always a little concerned where the phrase is assured as opposed to insured. Does this mean that in extenuating circumstances you may not receive the income/capital appreciation promised?
 
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Geoff Spires

New Member
My understanding is that the terms “insured” and “assured” are generally used interchangeably, but strictly speaking the term “insured” refers to the owner of the property insured or the person whose life is the subject of the contract of insurance, while “assured” refers to the person for whose benefit the insurance is granted.
Assured in essence means protected against discontinuance or change, i.e. "an assured tenancy" - guaranteed / certain / sure or secure.
But I am open to correction as to how it may apply to investments in Care Homes :).
 
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PostBrexitInvestor

Member
There is an ongoing police investigation into care home deaths in Scotland. This kind of news is not good for the sector whether or not there is anything behind the allegations/investigation. I agree though, at some point care homes will become an interesting buy as the UK population continues to age.
 
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Geoff Spires

New Member
Thank you for this info, I would be interested to know the outcome of this police investigation. I am however, waiting until the Covid and Brexit issue's are over and there is more clarity in the market, so am looking to invest mid 2021.
 
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Longterminvestor

Administrator
Hi @Geoff Spires

I stand corrected but I understood that assured returns are not guaranteed and may not be paid in "extenuating" circumstances.
 
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Geoff Spires

New Member
Ok Thanks. I will remember to be wary of the “assured” phrase.
 
R

realdeals

Active Member
I have a sneaking suspicion we will see the emergence of some new large nursing home companies in the aftermath of the coronavirus. Many of the independent will be struggling at the moment and ripe for takeover. This is definitely a growth industry but it is one in which it has been difficult to make money in the past.
 
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