Apartment Buildings & Care Homes
Apartment buildings and care homes are popular with rich investors who are looking for steady cash-flow for their investments. The sale and purchase of income properties are commonly determined by the cap rates as a measurement of returns on investments. Income properties in Geater Vancouver are selling between 4% to 7% cap rates.
A property with conversion for higher density usage or with land assembly potential for high density development may sell for much lower cap rate below 4%. Conversely, apartment buildings with major renovation works will likely sell at higher cap rates to compensate investors for the extra costs required to update the buildings.
Care Home Investment
Care homes are generally kept in good condition as it is important to attract and to retain residents to such facilities. With more people growing older, the demand for care homes are growing steadily in BC. In the Greater Vancouver area, occupation for most senior care facilities is close to 100%.
Such facilities are rarely available for sale as caring for senior is very demanding and there are many regulations and safety issues involved in the management of care facilities.
There are different levels of services under which care home facilities are regulated by the BC Health Authority. Independent living care or retirement homes offer active and independent seniors who needs little help to live in a senior facility. There are other senior care facilities that provide Assisted Living and Residential Care (access to nurses around the clock to monitor, assess and manage their care needs).
Is Financing Available?
Bank financing for apartment buildings and care homes are generally around 50% of the property value. You bank will also need to review the past 3 years financial statements to determine if they will finance your purchase. There are other financial institutions available to provide financing for senior care facilities.
If you are looking for an apartment building or a senior care facility to buy, you are welcome to contact James Wong at 604-721-4817 or email James using the link here.
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