We're delighted to present an article written by Stephen Penn, content editor at Abode2 Luxury Property Magazine. Abode2 is the No1 Google Ranking luxury global real estate magazine and website portal aimed at affluent property buyers, investors and second-homers.
When searching for the hottest new investment opportunity, people need only look to their future.
Stephen Penn, Content Editor at Abode2 takes a closer look at how investing in old-age accommodation can be a lucrative affair.
Golden Years Goldmine With Luxury Retirement Home Investment
Thanks to rapid medical advancements over the past decade, people are living much longer, which in turn has resulted in a surge in not just retirement properties, but high-end accommodation for golden-years living.
Recent data from Savills shows that rented sheltered housing in the UK does not meet the needs of 25 per cent of older households, and Britain’s over-65 population is predicted to grow four times faster than the general population over the next five years.
In light of these statistics, savvy investors are recognising the lucrative nature of luxury retirement living, as many wealthy elderly people look to downsize without compromising on the finer things in life.
While care homes have been struggling in profitability due to tight local authority budgets, demand for the luxury end of the spectrum has been soaring, with weekly fees increasing by more than 50 per cent over the past four years.
One such luxury example is Bancourt House in Devon, the most popular county across the UK with retirees. The English Riviera retirement resort is being transformed into 42 luxury studio apartments, with such facilities as a heated pool, bar and beauty salon.
Suites are tailored for low-key, hands-off investment, and start at £69,950, with 10 per cent net returns guaranteed over a ten-year commercial lease, and a number of buy-back options.
Other popular sites are Windlestone Hall, a new luxury retirement home in Durham, located close to the Yorkshire Dales, which offers investment opportunities from £105,000. This Grade II listed hall offer 45+ spacious and elegant en-suite apartments, and residents can partake in such activities as wine tasting and fine dining.
Investment director, Arran Kerkvliet, from One Touch Property says:
The luxury retirement home sector has seen lots of interest from large investors, who are clearly onto something.
The older population in the UK sit on a significant portion of the country’s wealth, so the weekly fees are not as unaffordable to them as they are for many others.
Due to the growing pool of potential occupants – by 2045 the Office for National Statistics predicts over 65s will account for almost a quarter of the UK’s population – developments of this ilk are on the rise. Knight Frank has cited a £10 billion of overseas wealth that is heading for this sector, heralding that it is time to strike while the iron is hot.
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Abode2 is a must-have read for anyone serious about buying in the UK or overseas, be it for investment, lifestyle or retirement purposes. Abode2 offers distilled advice from expert sources: acknowledged property specialists, investors and owners, all with a detailed knowledge of the destinations and resorts featured.
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