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Isle of Wight Luxury Retreat Investment Opportunity

A new luxury retirement home in Sandown provides an excellent rental investment opportunity with 10% net returns

The Isle of Wight has the second highest proportion of over-50s (45%), and is set to rise to 51% by 2029 according to research by the BBC. It ranks only behind Dorset in terms of the proportion of over 50s residing in the area.

To accommodate the increase in the number of over-50s living in the Isle of Wight, there is a new opportunity to invest in a luxury retreat in Sandown. A seaside resort, Sandown is popular with retirees and holidaymakers alike. Sandown Bay is the name of the bay off the English Channel.

According to AgeUK, over a million older people are lonely, 200,000 older people have not had a conversation with a family member or friend for a month and 3.9 million state that the television is their main form of company.  A recent poll by Gransnet – an over 50s social networking site, found that almost three quarters of older people reported feelings of loneliness and over half said they had never spoken to anyone about how they feel. Loneliness isn’t just upsetting for the individual experiencing it; it can also have a damaging effect on health and resources, as AgeUK claim it is as harmful as smoking 15 cigarettes a day, and can put added pressure on an already strained NHS.

Enjoying a long stay in a caring community such as Ocean View in Sandown will help to alleviate the feeling of loneliness. Residents can mingle with each other and reinvigorate their social lives by partaking in various organised and spontaneous recreational activities.

The Isle of Wight Caring Community is perfectly placed to accommodate the need for downsizers. In Surrey, 80% of the recent vendors that have listed property with Savills’ were downsizers selling the family home. Luxury retirement property developments are becoming increasingly popular due to the face that they offer additional services and access to qualified carers. Individuals can either rent or purchase an apartment and receive help with self-care if they require it, there are a plethora of social activities to partake in to stimulate their interests. There are currently 6.5m over 65s who own their own homes, 72% of which are three bedrooms or more, and many want to downsize, so there is clearly a market for resales.

The Ocean View Hotel in Sandown on the Isle of Wight is undergoing a stylish redevelopment by The Care Home Group. Guest will be able to enjoy outdoor heated pool, gym and spa facilities. Whether it is a fine dining experience, long stroll on the beach or treating yourself to a hair salon treatment, the Ocean View caring community will offer all these amenities. The daily rate for staying at Ocean View will start from £125 per room.

Suites at Ocean View Sandown start from £89,950 with a net return of 10% per annum over a 10 ten years lease. The attractive returns are complemented by two buy-back options in years 5 and 10 at 110% and 125% respectively. Units can be reserved for just £2,000.

The alternative option is to buy a luxury retirement property for £125,000; enjoy personal use for 6 months and then lease the property back to the care home group operator for up to 10 years and receive 10% net income per annum. This would provide hands off retirement income which will allow investors to enhance their lifestyle with the additional while having the peace of mind that a business is has a long term commercial lease in place.

Full occupation of the units is anticipated, due to the Isle of Wight’s aged population and Ocean View Sandown’s superior location and facilities. Due to the luxurious nature, these retreats will attract wealthy residents who choose to enjoy time away being pampered with those of a similar age, rather than those who holiday nearby out of necessity.

Interest in high-end retirement homes that cater for self-paying residents is high amongst investors. US real estate investment funds such as Welltower, HCP, and Griffin-American Healthcare Reit have been investing significant funds into the sector. If those experts consider the retirement and care home sectors to provide stable, long-term income, perhaps retirees looking for armchair investment opportunities should open their eyes to the positive outlook of this sector which is buoyed by the demand ageing population and increased life expectancy.

Enquire today about this luxury retreat investment in the Isle of Wight; anticipated to achieve excellent occupancy levels and thus high yields due to it being in an area with an already substantial (and growing) number of over 65s.

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