Nursing homes as a capital investment

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

Care properties are special properties. Nursing care properties are also understood as apartments located in retirement homes, residential homes with associated nursing care or in mixed homes consisting of assisted living and nursing homes. As an investor, you can invest in one or more such care properties and use them as an investment by benefiting from the rental yield.

Large market of private care facilities

As many local authorities do not have the necessary expertise to determine long-term care requirements, a market of private care home providers has developed in the recent past. The providers are often a combination of property developers and project companies that realize modern care facilities together with operators.

After completion, these are leased by the operators for at least 20 years. This is very advantageous for the investor. The investor bears no risk of loss of rent, even if the apartment is vacant for a short time.

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

Promotion for vacancies

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

Care properties can therefore be well worthwhile as an investment. A professional estate agent can help you weigh up all the opportunities and risks before investing.

Are you looking for a capital investment that meets your needs? Please contact us! We will be happy to advise you.

You can find more information here:

https://de.wikipedia.org/wiki/Finanzprodukt

https://de.wikipedia.org/wiki/Pflegeheim

https://www.destatis.de/DE/Themen/Querschnitt/Demografischer-Wandel/_inhalt.html

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 individual case.

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