There are many advantages to holding healthcare property as an ‘alternative’ within a portfolio are twofold. Firstly , with favourable underlying population dynamics, there is a high demand for investment within that sector.  Approximately 15% of over 85-year-olds are expected to make use of residential care of one form or another. The way to meet this demand is by the UK’s ageing care home stock needs to be substantially upgraded and new faciliyies buit. Secondly there is a real income advantage With long leases on properties, often being up to 30 years with them being stable , and long term and inflation linked income paid in the form of a 6% dividend paid quarterly can be created.

Commerical real estate can form also form part of a balanced portfolio, the reason being is it provides diversification and a combination of equity and bond-like characteristics. At present, the IPD index has a market income yield of 5.5% for the UK, and by having a balanced portfolio , it is possible to provide a sustainable and growing incomed yield to investors.

The UK commerical real estate market offers investors a mix of exposure to upwards-only open market rent reviews( can be good at times in the economic cycle such as now where there is growth in market rents ) and also indexed reviews to either a fixed percentage or RPI.

If you wish to seek independent financial advice on a portfolio you have or wish to have and you are located in Leamington Spa or surrounding areas , we at Hutt Professional have independent financial advisers with many years of experience who would be more than happy to offer you the independent financial advice you wish to have.