Nursing Homes - Purchase Or Sale Of Nursing Homes In Germany

Nursing homes, hospitals and homes for senior citizens for rent, purchase or sale in Germany

The asset class of nursing homes in Germany is not universally defined, but it usually serves as a safe umbrella for housing for senior citizens, assisting them with living facilities, medical clinics and rehabilitation facilities.  Considering the trend of a significantly increased aging population, the demand for senior housing is growing; therefore, investment in the nursing home or senior citizens’ home is often very lucrative. The potential growth in the market segment of building such homes is very high. Nursing homes are slightly dependent on the general economic atmosphere. The lease terms between the owner and operator are usually long-term. It is, however, important to note that a nursing home for senior citizens is limited in its use because it is a special property. This means that a third possible use is less likely than in other real estate investments. The nursing homes for senior citizens, with in-patient care, are either being operated by private organisations, or as non-profit by the government. Most nursing homes are driven by non-profit and non government organizations. For example, foundations, charities and the Social Service Agency constitute the second largest sponsorship of social properties in the private sector, and profit maximization is kept in the background. The non-profit or public-sector operator, such as the federal government, depends upon community work solely to cover costs. If profits are made at these institutions, they flow into a reserve for maintenance or modernization of the property at a later stage. To evaluate possible investment in nursing homes for senior citizens, various factors are analyzed. It is important to determine the degree of utilization of the home. The average duration of a lease of a free room should also be determined. The review of the quality of care and general satisfaction of the residents are indications of the quality of the operator. The carrier is primarily responsible for the success of the nursing home; therefore, investors should do a thorough analysis before selection. The real estate investment is successful only if a regular cash flow is generated. Either a lease or rental agreement is closed between the owner and operator. The usual duration of the contract for a retirement home for senior citizens is fifteen to twenty years with renewal options. The existing or intended use should also come under scrutiny. The investor is requested to determine whether the concept, such as a retirement home, nursing home or assisted living quarters, has a future potential. As with any other real estate investment, the particular location of the retirement property is important. A distinction between macro- and micro-situations has to be made at this point. For example, the macro situation concerns the potential of each region for a fully loaded nursing home for senior citizens. The micro-situation, for example, concerns the suitability of the environment for the residents. There should be no noise pollution, traffic congestion or roads bearing heavy traffic, and a shopping centre should be located in the immediate vicinity. The buildings or the premises of nursing homes should be self-sufficient in terms of equipment quality, use, flexibility and space efficiency. All these facts should be analyzed very carefully to avoid any future loss in investment.

Buying Guides for nursing homes, social housing, hospitals and senior housing in Germany

KARODI- the Investment Property Specialist and real estate agent from Germany is ready to help you and is available for buying or selling houses for senior citizens, nursing homes, hospitals and old-age homes nationwide in Germany. In particular, we are active in the cities of Aachen, Bergisch Gladbach, Berlin, Bonn, Dortmund, Dusseldorf, Essen, Hamburg, Frankfurt, Koblenz, Cologne, Leverkusen, Mainz, Munich, Munster, Neuss, Stuttgart, Solingen, Wiesbaden and Wuppertal, or in the territory of the federal states of North Rhine-Westphalia (NRW), Hessen and Rhineland-Palatinate.