Care Home Investments....Good Idea ?

xylophone

I have held the Target REIT as part of an income portfolio for a couple of years.

It has paid a regular quarterly income and shown a modest capital gain.

Mutton_Geoff

AnotherJoe wrote: »

I would say this area is a lousy investment though, for the simple reason that although the demand for these homes is growing, they are inherently expensive to run, which mean so most people can not afford them which means that inevitably government gets involved which means high costs and poor returns, by definition.

My own experience shows this too. I bought £1,000 of Southern Cross shares as they fell to a fraction of their normal price. The owners had already asset stripped the business but I was convinced they would be bailed out or taken over since they had a fair share of the market.

Two weeks later they went bust and I lost my money (it was a gamble I was prepared for at the time but I won’t poke my nose in that industry again).

gwjuae

If you're looking at buying into a few different unregulated very high risk property types, pass it to a solicitor and a financial advisor first of all. If it looks too good to be true, it most likely is.

Does it offer 10% for 10 years and that sort of thing? Walk away, no, run.

Care homes, hotel rooms and student accommodation, if you're buying in cash and just a room. This will likely result in a total loss of your cash invested with little to no chance of any return.

If yields at that sort of level really were available, why on earth haven't the government or banks or large investment houses, like JP Morgan etc all bought these up?

If you really want to spend your money like that, go to a horse race, at least you'll enjoy it and have a small chance to win something!