Social Living - Care Property
Invest in the future: Senior living properties are an attractive investment opportunity with sustainable returns. Benefit from the increasing demand for age-appropriate housing in the growing care market.
Long-term rental security
The major advantage of nursing homes is the long-term leases, often for 20 years or more. Even if the apartment is vacant, you continue to receive secure rental payments, as the nursing home operator is responsible for the rent payments.
Increasing demand:
Investments in nursing apartments and assisted living facilities are among the most interesting and secure growth markets in Germany. This is due, on the one hand, to increasing life expectancy and, on the other, to the need for suitable housing for seniors. After all, just because people are getting older doesn't mean they automatically require care. Often, stairwells, garden paths, or bathrooms simply no longer meet the needs of older people.
Private investors welcome
Previously, this form of investment was reserved for institutional investors. Today, senior living properties are also gaining popularity among private investors. Investors have the opportunity to invest their assets profitably, secured by land registry, to diversify sensibly, and at the same time make an important contribution to the common good. Hardly any other real estate option combines security, stability, and simplicity so well. At the same time, there is undoubtedly a huge demand for nursing homes in Germany.
Demographic change
Due to demographic change, the demand for nursing care places will increase significantly in the coming years. Experts predict that around 3,400 new nursing homes will be needed by 2025. "Nursing Home Atlas & Demand Forecast Germany 2009 to 2025"
Advantages of investing in nursing homes
as retirement provision & investment:
Advantages of nursing homes as retirement provision & investment:
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Automatic rent adjustment Automatic rent adjustment (inflation compensation) through indexed rental contracts.Listenelement 1
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Tax advantages As an investor, you can take advantage of many tax benefits.Listenelement 2
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Security Securing the property through a separate land register entry.Listenelement 3
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Hardly any administrative and rental costs By handing over all tasks to the operator and manager of the care property, there is hardly any time-consuming administrative effort.Listenelement 4
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Mind-blowingInvesting in the future market of care – a social, sensible and attractive investment
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CostsThe purchase is often commission-free because you purchase the property directly from the developer.
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High rental yieldThe rental yield (ratio of the purchase price to rental income) is often around 5%. This usually does not take into account tax benefits, nor the costs for administration and maintenance reserves.
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Preferred occupancy rightsOwners of care apartments are granted "preferential occupancy rights." Should the owner need a place for themselves or a close relative, they will be allocated priority. This occupancy right often applies to all of the operator's facilities.
Frequently Asked Questions
FAQs
Who is an investment in nursing homes suitable for?
This type of investment is particularly attractive for investors who don't want to worry about renting and managing the property. Anyone looking for a long-term, secure, and inflation-protected investment will find this type of property very suitable.
What is the difference between a retirement home, a nursing home and a senior residence?
A retirement home is primarily about social integration, whereas a nursing home focuses on the care provided by its staff. A senior residence is almost comparable to a hotel. It offers more than a traditional nursing facility.
What makes a nursing home a good investment?
The first important aspect is location. Other factors to consider include competition and property prices in the area.
Are there tax advantages when purchasing nursing homes?
Special depreciation: Under certain conditions, additional depreciation options may exist for nursing homes that go beyond regular depreciation.
What exactly are you buying from a legal perspective?
When purchasing a care property, the buyer acquires a care apartment or an assisted living apartment, along with shares in the common areas. These include, for example, the communal kitchen, shared terraces, therapy rooms, lounges, and outdoor facilities.
Will I be registered as the owner in the land register?
An investment in nursing homes is secured by land registry law. The buyer acquires all rights and obligations associated with the property and is registered by name in the land register as the owner. They can resell, bequeath, gift, or mortgage their property at any time.
Can I finance the property?
As with other real estate, nursing homes are usually financed with construction financing. In this case, the interest is tax-deductible.
