The increase in popularity of retirement living in the UK and the UK’s ageing population, coupled with the shortage of appropriate retirement living suites, provides an ideal investment environment. Large corporations are recognising the gap in the market for retirement home investment and have begun investing millions into the sector.
Retirement property investments give South African investors a lot of flexibility to choose what they want to do with their wealth and opportunities tailored towards the individual investor and offered by One Touch Investments often sell out within a few days. For a start, commercial property under R2.51 in the UK is exempt from stamp duty (land tax) at acquisition, however, recent tax changes on income on UK residential properties will not apply to care homes or retirement home investments.
See for yourself! Download the One Touch UK investors retirment guide here for all the fact and figures – just click on the guide image below
Lifetime leases cannot be passed on to a beneficiary so if the occupant dies within five years the investment is returned to the company with no benefit to the remaining family’s inheritance and at a far greater cost. Similarly, the fixed-term nature of the leasehold that accompanies investments offered by One Touch can be passed onto other family members should the owner pass away before the leasehold is up.
There is also improved flexibility with a number of buy-back options. If for example, you invested in a luxury retirement home in Blackpool (investment starts at R1.16m) then you can expect buy pack options of 110 percent by the sixth year, 115 percent by the ninth year and 125 percent by the tenth year.
Another bonus is that minimal management is required from the investor, with each care home run by an experienced management company who oversees the day-to-day running of the care home. Owning a rental property can be time consuming if self-managed. However, investors will get their income paid monthly and do not have to concern themselves with anything else. In short, the investment is completely hassle-free, which is particularly attractive to South African investors who will be residing in a different country and not always available or not wanting to be hands on.
The Property Buyer show was recently brought to One Touch Investment’s attention by Estate Living. One Touch Investment decided to trial exhibiting at the show, to forge personal connections with potential investors.
As part of their ethos, One Touch Investment aims to deliver invaluable investment advice tailored to the individual; taking into consideration their available funds and financial objectives. By meeting face-to-face, the consultants at One Touch Investment were able to build up rapport with investor; from those who have plenty of experience in investment, to those who are entering the world for the first time.
The Property Buyer Show agtracted a wide range of people, from young adults looking to buy their first home, to those in later life who have savings that they wish to invest to achieve better returns. Due to the opportunities they offer, One Touch felt that they had the best connection with those in their 50s or 60s who are looking to make money in retirement.
There was a clear match between the passive investors’ requirements and the two investment opportunities that were showcased; the first being luxury retirement homes and the second being a student property investment. These were handpicked for their solid sector fundamentals of undersupply and high demand, the fact that they are fully managed, and pay an enviable 8% – 10% net returns.
One Touch has put together an investors guide to help you make the correct investment decisions.
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