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Rosewell Care Home in Bath offers investors opportunities in care home investment market

22nd February 2017 Print

Situated in a beautiful rural setting, Rosewell Care Home benefits from amazing views and a location that is close to High Littleton village. Demand for Care Homes in and around Bath and Bristol is high which means that Rosewell provides the perfect opportunity to capitalize on the lack of supply. The Care Home will consist of 50 studios, all of which will come with en-suite bathrooms and first class fixtures and fittings as well as friendly and comfortable communal areas.

Currently, it is possible to purchase the leaseholds of individual care studios at a reduced price making it possible for investors to add a care home investment to their portfolio. Following a purchase, the developers will then lease the studio back from investors at a price that equates to 10% net for the next ten years.

Once the developers have found a resident for your care studio, they will then purchase it from you at a 10% net premium that is guaranteed for ten years on your initial investment. This provides a solid and efficient return on investment. To further enhance the appeal of the development, there is also a 110% buy-back from exchange or  as well as a buy-back option in year 10 of 125% if the studio has not been purchased by an end user by this point.

Once the refurbishment work has been completed, all properties are then relaunched using both online and offline marketing campaigns as well as benefitting from the experience of a care services business. The interiors offer complete luxury while the premium-level costs ensure that they are classed as the top accommodation aimed at care within the area. They are also aimed at those individuals and couples who are self-funded with a high-net worth who have the ability to either lease or purchase their care studio.

The benefit of a full exit strategy

One of the main benefits of investing in Rosewell Care Home is the clear and concise exit strategy. This provides investors with the opportunity to leave the investment with a guaranteed rise of 10% added onto the original cost of the property. This is an important strategy for the developer which means that they are keen to buy back the unit from the investor. This is an option that is taken forward by the developer when the unit is sold on to a tenant or end users as they are known.

The process

So how does the purchase and sale process work?

To begin with the investor purchases the property at a lower price of £76, 965. Once the contracts have been exchanged, the investor will earn a monthly rental income of 10% net. It is possible for the developer to buy the unit back at any time following the exchange of contracts for an increase of 10% on the original price that the investor paid. This offers investors the opportunity to make a quick return in a short period of time.

For more information on Rosewell Care Home or care home investments in general, please contact Hopwood House.