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Care-Home-investment

Will care home investments be the next big thing?

The UK is set to witness a stark rise in the number of people aged over 85 who require care over the next 35 years.

Rising life expectancy rates and a high demand for beds have sparked investor interest, as many consider the non-discretionary nature of the sector as a hotbed for investment.

Ageing population

Currently there are 4 people of working age for each person aged over 65 and this number is set to halve in the next 35 years.

What’s more, the number of people aged over 85 is predicted to double over the next 20 years. An ever-expanding ageing population coupled with rising life expectancy rates will no doubt add pressure to a sector which is in dire need of investment.

Around 15% of over 85s are expected to require residential care in one shape or form. Many existing facilities are now dated and require a substantial overhaul to provide the best quality care.

Investment in modern, purpose-build healthcare properties, operated by well-established operators could build the bridge between current supply and demand.

Factors for consideration

Among other things, investors should consider a few new variables which may affect their care home investment.

The government’s recent announcement that care workers should receive the national living wage has been welcomed by many however, investors should ensure that the opportunity they are considering has factored in this pay increase.

Also, the spending cap – outlined in the Dilnot Report – whereby an individual’s personal care costs would be capped at £75,000 is something people should consider. The cap has been pushed back to 2020 however, many experts believe that a cap will never be introduced.

Changes to legislation are not the only factors investors should consider. Location is an important element that investors should consider. The care sector is not limited to big cities. It is often smaller communities or areas on the outskirts of a town or city which would benefit the most from a care facility.

Investors should look to buy in a location that has a large proportion of people aged over 65 and in areas where there is already a high occupancy rates in existing facilities.

A Management Company with a good reputation will also go a long way when it comes to attracting residents. Investors should check what the CQC (Care Quality Commission) has reported about the company before investing.

Care home investments

Typically investors can purchase an individual room within a care facility which is then let out on a leasehold basis to a reputable care operator.

Investors can expect to generate a long-term rental income from an asset class which is vital to the UK’s economy.

Care home investments could provide property investors with a way to diversify their property portfolio and generate a stable income from the asset class.

Apulia

Apulia’s Growing Tourist Attraction Should Attract Your Investment

Apulia or Puglia is the adored heel of the boot that is Italy. The southern paradise of Italy is surrounded by clear waters and scenic landscapes, bordered by the Adriatic Sea to the east, Ionian Sea to the southeast, the Otranto Strait the south and the Gulf of Taranto further south.

Apulia is the most historically rich region in Italy, a land of natural beauty, with immense archaeological wealth, traditional settings and unspoiled nature.

Apulia is fast becoming a favourite destination for holidays. Every year, tourists are drawn to the ancient buildings whose originality has been preserved for several centuries, Tourists bask in the culture of whitewashed trullo houses, fine wine, traditional food, and beaches whose natural beauty cannot be captured with words.

The region’s economy has mostly been based on agriculture, services, and SME businesses. Apulia is Italy’s biggest producer of important produce like wheat, carrots, tomatoes, eggplants, olives, almonds and citrus

Tourism has recently made large gains in the region’s contribution to Italy’s GDP, but Apulia is still young as a tourist destination. Most parts of the region do not yet have the comprehensive and full-blown tourist facilities found in the more popular Tuscany, Florence and Rome.

Apulia is divided into 6 provinces, namely Bari, Brindisi, Lecce, Taranto, Foggia, and the Barletta-Andria-Trani. Here is some advice on places to invest in, in Apulia.

Tips

Italy is the world’s 6th largest earner from tourism, and was the 5th most visited country in 2015. And, an increasing number of these paying tourists are traveling to the charming region of Puglia. Exotic seaside resorts like the Egnazia and refurbished hamlets are beginning to sprout in the area as savvy investors take advantage of the growing allure Puglia has for tourists.

Bari

Bari is the capital of Apulia and boasts several tourist attractions. Here, you will find the Basilica di San Nicola; the Bari Cathedral; the Castello fortress; the Pinacoteca Provinciale; the Fiera del Levante trade fair; the gorgeous Lungomare Nazario Sauro promenade; and the awesome Castellana Grotte caves.

Bari, however, does not hold the wealth of unspoiled nature like the Savelletri in Puglia. Tourists going to the more exotic holiday destinations in the region, usually stop over at Bari because of its airport. The Bari airport is favoured by several budget airlines which take advantage of the strategic location of the city. Bari also boasts a port that connects Greece, Albania and Croatia

Lecce

Touted as the Florence of the south, and for good reason, it is home to the majestic Basilica della Santa Croce and the intimidating Roman amphitheater on Piazza Sant’Oronzo. You’ll find other amazing attractions in Lecce here.

Hospitality is a very smart investment in Apulia. You can choose to invest in the connecting centre, Bari. Accommodation in Bari, especially for tourists, tends to be either too costly for top hotels or substandard for cheaper ones.

Alternatively you can invest in a holiday outfit in the growing tourist hubs such as Lecce and the Savelletri in Brindisi.

Conduct feasibility studies and find the niche that best suits you. Puglia can only grow as a tourist attraction. Investing now would be a smart move to tap into the growing economy that is Apulia, before it becomes the new rave for investors in the Italian tourism industry.

The House Shop

UK Property Prices May Have Peaked

Property sellers asking prices have stopped growing amid signs that the prices of properties in some areas of London have hit the ceiling of what buyers are willing, or can afford to pay, according to property website rightmove.co.uk.

Rightmove has said that asking prices across England and Wales were virtually at a “standstill” in June, increasing by a meagre 0.1 per cent, or around £200, on the previous month, to reach an average UK property price of £272,275, compared to the 3.6 per cent monthly jump witnessed in May.
More regions experienced prices falling than rising month-on-month, and London, widely considered the engine of UK housing market growth, recorded a 0.5 per cent monthly fall in average asking price.
However, prices in London are still up 14.5 per cent compared with June 2013 and now stand at around £589,776. The North West of England witnessed the biggest month-on-month fall, with a large 1.8 per cent monthly drop in asking prices, with average values sliding to £169,253, after a 1.8% decrease.
In Wales, there was a 0.6 per cent monthly rise, and a 4.2 per cent year-on-year increase, raising average prices in the region to £178,520. Rightmove attributed London’s monthly fall to a combination of increasing buyer caution and a massive 23 per cent month-on-month increase on the number of new properties being put up for sale, which has significantly widened buyers choices, and thus supply is exceeding demand.
Rightmove director Miles Shipside, said that “some [sellers] will be looking to cash in and possibly get a lot more house for their money further out, but they may have missed the peak in the rush to realise their gains as parts of London appear to have hit the upper price buffer.”
Shipside explained that whilst there has generally been an increase in the supply of property across the nation, stock levels of estate agents are still significantly below the levels witnessed last year, with a shortage of properties on the market in particularly desirable areas still putting an upward pressure on house prices.
The findings have been released amid speculation that preventative measures could be taken in an attempt to cool the housing market. Last week, George Osborne, Chancellor of the Exchequer, announced his plans to hand the Bank of England powerful new tools to help enable it to put a cap on the size of mortgage loans as a share of the borrowers income or the estimated value of the property.
Osborne insisted that the property market “does not pose an immediate threat” to financial stability, but he also stated that it is greatly important to take action against anything that may result in a repeat of the boom and bust periods we have witnessed during the global recession.
Rightmoves findings were backed up by the Royal Institute of Chartered Surveyors (Rics), who stated that the sharp rises in house prices that we have recently witnesses, and stricter rules on mortgage lending are starting to cool the market as consumers become increasingly cautious regarding property.     
Author Bio: Bradley Shore is an experienced travel and investment writer, he likes to keep people informed on the latest changes in the property market, he has a good knowledge on the property market as he spends his days consulting investors. You can see his passion in his writing through his recent work for Innovo property investors.