Savings people will be more attentive when considering any type of investment. You don’t want your savings to go to something that doesn’t meet your financial goals if you have worked hard your whole life. You can minimize risks if you follow the advice below.
1. Pick a location in high demand
First, evaluate the market demand for the type of property you want to purchase in the area. It would not make sense to buy a student property that is far from all universities or in a small town that can accommodate most students. Similar to retirement property, older people often move to quieter areas in the countryside and by the sea. It makes sense to search for retirement communities that are located in these areas. Many of our UK retirement home investments are located in coastal towns in the south west, such as Cornwall and Devon. One in four people over 65 live in an area with an existing retirement village.
2. Select an area with low supply
You’ve made your investment decision in an area that is highly sought-after. It is important to find areas that are in high demand. You should aim to find the area’s demand before others do. It is sometimes not possible to find undiscovered areas within the UK.
Is there anything that can stop other developers building luxury retirement homes in areas with similar returns and appeal to your investment? It is important to assess the barriers and opportunities for entry. There are many National Parks and Areas of Outstanding Natural Beauty in areas like Devon that must be preserved. Restrictive planning permission can be granted for new properties by local governments that manage the supply of property. The Green Belt (Protection) Bill 2017-19 prohibits the building of large areas on land. This limits competition from other developers and means there is only limited space available for building.
3. Unique service or position
You should consider investing in a place with high competition. Instead, look for a property that is unique. You could consider the location, build quality, or historical aspects of the property. Many of our retirement home investment options are renovations of Grade II listed buildings. Their historical heritage is very appealing to the older generation. We also invest in luxury amenities like spas and beauty treatments, cinema rooms, and fine dining experiences. One Touch Property’s investment director.
4. Investment sustainability
After you have done your research and chosen an investment area with an undersupply, you can start to think about the long-term viability of the investment. It is important not to choose an investment in a restricted market. You might choose to invest in a retirement residence in Portugal that is open to British expats. However, Brexit could have a significant impact on the amount of British citizens who live there, which could dramatically impact the income you get. It is better to look long-term if you want to invest in long-term income.
You can reap the benefits of investing in retirement properties in the UK. The UK has an ageing population, and it will only get older. According to the Office for National Statistics, the average age of Britain last year was 40. The number of people over 75 is expected to nearly double by 2040 to 10 million. This generation is also more wealthy than ever. Knight Frank estimates that over 60s in England have over 1,200billion dollars in unmortgaged property wealth. This means they can afford luxury lifestyles.
For more information on UK retirement home investment and advice regarding property buying and property investment, contact One Touch Property today
