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Care properties as capital investments

The demand for care facilities is constantly increasing. The reason for this is the demographic development in Germany, with its disproportionate increase in the elderly population compared to the younger generation. Care properties are therefore an interesting investment opportunity for more and more capital investors.

Care properties are special properties. Care properties are also understood to be apartments located in retirement homes, residential homes with attached care facilities, or in mixed homes combining assisted living and nursing homes. As an investor, you can invest in one or more such care properties and use them as a financial investment by profiting from the rental income.

Large market for private care facilities

Since many municipalities do not have the necessary expertise to determine long-term care needs, a market for private nursing home providers has developed in recent years. The providers are often a combination of developers and project companies that work together with operators to build modern care facilities.

Once completed, these are leased by the operators for at least 20 years. This is very advantageous for investors, who do not bear any risk of rental losses, even if the apartment is vacant for a short period of time.

Care properties are also extremely attractive from a tax perspective. Not only can the property itself be written off for tax purposes, but the movable inventory can also be written off over 10 years through the furnishing of the apartments. In addition, certain care properties are subsidized by the government. This applies in particular to inpatient care facilities, hospices, homes for the disabled, and psychiatric institutions.

Support in the event of vacancy

If the property becomes vacant or the resident becomes insolvent, the state takes over the rent, i.e., the subsidy benefits the operator, who thus has a lower risk of insolvency. The returns from rent and increases in value are also impressive. They are estimated at four to six percent, in some cases up to eight percent.

Care properties can therefore be a worthwhile capital investment. A professional broker can help you weigh up all the opportunities and risks before you invest.

Are you looking for an investment that meets your needs? Contact us! We will be happy to advise you.

Further information can be found here:

Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.

Photo: © aeydenphumi/Depositphotos.com

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