Investing in supported living property makes sense for several reasons, whether you’re an existing property investor or considering entering the market. While general property investments offer long-term stability, potential for income, and capital gains, supported living properties offer additional advantages.
Unlike the volatile rental market, the supported living property sector is distinct. Vulnerable adults seeking long-term rentals often prefer the stability and quality housing provided, resulting in less frequent moves. The national demand for supported living properties is high, as many individuals seek homes in their communities, close to family and caregivers, to support independent living.
The illustration below offers a transparent view of the potential returns for a typical Supported Living property.
25-Year Cash flow illustration
2 Bedroom House
Purchase Price:
£90,000.00
Annual Income:
£7,200.00
Monthly Income:
£600.00
Yield:
8%
Rent Growth Forecast
Y1 Rent:
£7,200.00
Y25 Rent:
£11,580.75*
Lease Period:
25 years
Total Rent Received
£230,618.16*
Yield Forecast
Y1 Rent:
8.00%
Y25 Rent:
12.87%
Project ROI:
156.24%
*Based on an average 2% inflation rate per annum
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