Cwmgwili Care Home

Care Home - United Kingdom, Carmarthenshire
Minimum Cash Investment: £114,489
8.65% - Max Year 1 Net Yield on Cash

This purpose-built care home in Cwmgwili is conveniently placed to appeal to guests and visitors just 1 mile from the A48 between Cross Hands and Pont Abraham, not far from M4 junction 48. The home specialises in the needs of people with dementia and Alzheimer’s, in an area where 1 in 3 Carmarthenshire residents will be aged 65 and over by 2039.

The care home comprises 36 rooms with services delivered by a team of 9 nurses and 25 care assistants. The rooms are fully staffed and operational, reducing any wait for rental income for investors.

It enjoys a high reputation within the local community and among healthcare professionals. Combined with its wide array of amenities and entertainment, including phone and TV points in bedrooms and numerous excursion opportunities, this helps to underpin interest from potential residents and occupancy rates for existing residents.

The facilities offers multi-faceted specialist service to cater to nursing, dementia, mental health and learning disability needs. With English and Welsh also spoken in equal measure by staff, this maximises the potential pool of residents.

Rooms are available for cash purchase from £74,999, with prices ranging up to £99,999. 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 £75,000, 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 £100,000 yields are assured at 9% in year 1, rising to 9.5% in year 2 and 3, then 10% in year 4 and 5.

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

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