For investors, New Year can serve as the inspiration for broadening their portfolio and discovering the benefits of new asset classes. In that vein, care homes are tipped to be one of the most intriguing asset classes and investment models of 2017.
“We’re going to see care home investment taking off in a big way in 2017,” Jean Liggett, CEO of Properties of the World, said. “It’s an interesting asset class as it’s one of those rare investment models where absolutely everyone wins. The UK’s population is ageing and we need to build more care homes, providing superior accommodation that affords comfort and dignity to our citizens as they age.”
Investing in a care home can provide individuals with impressive returns. The sustainable investment model carefully balances the needs of the investor, those living in care, their families, the community, care professionals and the Care Quality Commission (the UK’s regulatory body for care homes). This ethical balance makes care homes a particularly intriguing asset class for 2017.
Naturally, existing strong asset classes will continue to be popular in 2017. Despite the government tinkering with landlords’ incomes through changes to stamp duty and tax on second homes, UK buy-to-let remains a popular way for virgin investors to profit from property.
“The UK’s housing crisis is still far from resolved,” said Jonathan Stephens, Managing Director of Surrenden Invest. “The country has been working hard to increase the rate at which it has been building homes and the latest purchasing managers’ index shows that construction reached a nine-month high in November.
“Despite this, the Federation of Master Builders has reported that 87% of local authorities don’t believe they will hit the government’s housebuilding targets by 2020. This means that buy-to-let still presents a huge opportunity for those looking to invest in property for the first time.”