PLEASE READ BEFORE POSTING

Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.

Care Home Investments....Good Idea ?

2

Comments

  • lisyloo
    lisyloo Posts: 29,611 Forumite
    Name Dropper First Anniversary First Post
    elsien wrote: »
    You are aware that care homes are closing at a rate of knots and one of the larger chains is on the verge of going into administration?

    I was aware of this as recently we had to find somewhere for my FIL. We were very "lucky" that an empty room came up where we wanted. I say lucky as someone else had to die for that to happen.

    OT for investments, but it's quite worrying that in the immediate term our hospitals will be stuck with paying for whom were pending £3K per week in a hospital bed.
  • xylophone
    xylophone Posts: 44,393 Forumite
    Name Dropper First Anniversary First Post
    Had you considered a REIT specialising in this sector?

    https://www.targethealthcarereit.co.uk/what-we-do/our-business/
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    OP, tell your friend to set fire to his money in the street, as it will save a lot of heartache and angst, And get the loss over with quicker, so he can move on with his (or her) life.

    Bottom line, if something like this isn't an actual deliberate scam, the end result will be the same as if it was, bye bye £90k.
  • sanfairyanne
    sanfairyanne Posts: 165 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    xylophone can you suggest any plus point as to why I might consider REIT?
  • sanfairyanne
    sanfairyanne Posts: 165 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    Thanks AnotherJoe,
    Damned I'm so pleased I logged on tonight
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    sanfairyanne wrote: »
    xylophone can you suggest any plus point as to why I might consider REIT?

    Well I will. It spreads the investment out amongst multiple care homes and care home companies and avoids dubious (I am being kind here) schemes of the sort mentioned.

    This still says nothing about whether this is a good investment area, but if you wanted to invest in this area, this would be a reputable place to do it.

    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.
  • sanfairyanne
    sanfairyanne Posts: 165 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    AnotherJoe wrote: »
    Well I will. It spreads the investment out amongst multiple care homes and care home companies and avoids dubious (I am being kind here) schemes of the sort mentioned.

    This still says nothing about whether this is a good investment area, but if you wanted to invest in this area, this would be a reputable place to do it.

    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.

    Thanks, AnotherJo, I'll be sure to pass this on.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    First Anniversary Name Dropper First Post
    £23k return over 10 years on a £90k investment is 2.5%pa.


    That's lousy, even before the risk.
  • sanfairyanne
    sanfairyanne Posts: 165 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    AdrianC wrote: »
    £23k return over 10 years on a £90k investment is 2.5%pa.


    That's lousy, even before the risk.

    Yes AdrianC, That's the return on the rooms sale price. The rent is supposed to be a guaranteed 10% (depending which company).

    Considering nobody here has had a good word to say about this investment I think I can convince my work colleague to think of something else to invest in.
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Or another way of looking at it is, you give me £90k and every year I'll give you 10% of your own money back and after the ten years I'll return another quarter of it as a miserable Return you've had to wait ten years for.
    I could make a nice living from a deal like that without the hassle and expense of running care homes either.
    Ask your friend to PM me. :D
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards