How to buy a care home
A guide to buying a nursing home
With elderly people living longer because of medical advances and the trend towards healthier lifestyles, demand for care providers has been growing in recent years. However, the care home sector has not been immune from the credit crunch as funding has been difficult to obtain. In this climate though the shortage of quality homes has helped to keep prices relatively stable. Care homes are seen as a good investment as they offer a good maintainable income over time.
Who buys a care home and what are the skills necessary?
Experts in the sector generally agree that management experience is a given for anyone considering buying or running a nursing home. A genuine desire to care for the elderly and to create a good working atmosphere that will be felt by residents is essential. It is important to realize that there is a high level of administration and a need to keep on top of the regulations considering that a poor inspection can have a detrimental effect on the value of the home.
Rules and regulations
The National Care Standards Commission has regulated care homes since the Care Standards Act replaced the Registered Homes Act in April 2002.
As a result of the Act coming into force, a large number of care homes were deemed unsuitable. This prompted many under-qualified owners to sell up or close down their homes, leading to a shortage of beds for the UK's elderly residents.
Subscribe to the Business Sale Report for more details on the qualifications required to become a care manager at a care home, the cost of hiring a care manager and the health and safety requirements for anyone hoping to run or buy a nursing home.
How much should I expect to pay?
More information about how care homes for sale are valued is available to subscribers to the Business Sale Report.
What is the current market like for care homes?
Tom Driscoll of Pinkertons commented that the market has been hit to a certain extent by the credit crunch in that banks were prepared to lend on an 80/20 basis previously but now they are looking at 70/30 split.
Subscribers to the Business Sale Report can view more details about funding options open to those who wish to purchase a nursing home. This includes information about bank mortgages and what multiples of profit that care homes are selling for.