Burry Port Care Home

Care Home - United Kingdom, Carmarthenshire
Minimum Cash Investment: £81,039
7.90% - Max Year 1 Net Yield on Cash

This assisted living facility in Burry Port overlooks Carmarthen Bay. The home, which specialises in the needs of people with dementia and Alzheimer’s, is located in an area where 1 in 3 Carmarthenshire residents will be aged 65 and over by 2039. The home comprises 40 rooms in a converted period property. Operational for 25 years, the home is fully staffed and operational with a strong track record that will underpin its appeal to potential residents.

The facility offers en-suite rooms, with telephones, TVs and a nurse call system, as well as a hair salon and visiting chiropodist and physiotherapist – luxury facilities that compliment the property’s unique history and desirable bay views, distinguishing it from other nursing homes.

Rooms are fully furnished, but residents are encouraged to bring personal possessions, with no requirement for investors to furnish the property or maintain it.

Rooms are available for cash purchase from £79,999, with prices ranging up to £119,999. No maintenance or ground rent is required and no stamp duty is payable, which means that investors can earn rental income without additional hidden costs reducing returns over the course of the investment period.

Rental income is assured and increases over time, with the returns tiered to match the price of room purchased. For rooms priced at £79,999, yields are assured at 8% in year 1, rising to 9% in year 2 and 3, then to 10% in year 4 and 5. For rooms priced at £119,999 yields are assured at 9% in year 1, rising to 9.5% in year 2 and 3, then 10% in years 4 and 5.

The property is fully managed, ensuring fully hands-off income. This is paid in advance to the investor’s bank account every quarter.

Investors can sell the room at any point on the second market themselves or take advantage of a guaranteed buyback from the care home operator to simplify the resale process.

While capital growth prospects are minimal for this asset class, the buyback amplifies overall ROI. Buyback options start at 109% in year 3 and rising to 115% in year 5, 123% in year 9, 130% in year 15, and 140% in year 20. Five Quadrant’s financial illustration calculates a total ROI of 171% over 15 years.

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