Investing in Aged Care Facilites

[staceyo]

Hi

Wondering what others opinions are on investing in unit's in aged care facilities. They are relatively cheap properties, with $$ returns to pay it off. Whilst the capital growth may not be as great, surely with our aging population it can't go backwards??

We have just bought our 2nd IP and have a little left to burn ($110K). So do I wait to build up more equity to buy bigger/better or snag something small now.

Stacey

 

[Monopoly]

Hi Stacey,

I'd do a bit more research / homework before I'd even consider these aged care properties if I were you. There is a lot of legal entanglements (to mention but a few issues) with these sorts of investments, with the major one being that often the vendor/establishment has a "buy back" deal associated with buying into them. That is, they are generally sold to elderly people (over 55's) often with underwritten agreements that upon the owners deaths, they are sold back to the facility (usually for about the same, or slightly higher) than original purchase price!!!

Put that $110K to better use (ie. shares, managed fund, or simply a deposit on another IP).

Good luck,
Jo

 

[WillG]

Hi

Wondering what others opinions are on investing in unit's in aged care facilities. They are relatively cheap properties, with $$ returns to pay it off. Whilst the capital growth may not be as great, surely with our aging population it can't go backwards??

We have just bought our 2nd IP and have a little left to burn ($110K). So do I wait to build up more equity to buy bigger/better or snag something small now.

Stacey

Some of the points raised in the following threads ...
# Lack of control
# Buying part of a business
# Questionable capital gains
# Some dodgy operators
# Single purpose property

Some previous threads ...

http://www.somersoft.com/forums/showthread.php?t=32124&highlight=retirement+village

http://www.somersoft.com/forums/showthread.php?t=25687&highlight=retirement+village

http://www.somersoft.com/forums/showthread.php?s=&threadid=11806&highlight=retirement

http://www.somersoft.com/forums/showthread.php?s=&threadid=5457

 

[Monopoly]

Some of the points raised in the following threads ...
# Lack of control
# Buying part of a business
# Questionable capital gains
# Some dodgy operators
# Single purpose property

Some previous threads ...

http://www.somersoft.com/forums/showthread.php?t=32124&highlight=retirement+village

http://www.somersoft.com/forums/showthread.php?t=25687&highlight=retirement+village

http://www.somersoft.com/forums/showthread.php?s=&threadid=11806&highlight=retirement

http://www.somersoft.com/forums/showthread.php?s=&threadid=5457

You're a star WillG!!!

Thanks for digging up these "oldies" !!!