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 homes as an investment

Care homes are generally kept in good condition as this is important to attract residents to such facilities. With more people growing older, the demand for care homes are growing steadily in BC. In the Greater Vancovuer area, occupation is near 100% for most facilities. A Richmond "Independent Living" care home facilicty with 38 rooms and cap rate around 6% is available for sale. This Richmond care home is just 10 years old and located on a large lot 32,000 sq ft lot (possible to add a north wing to expand the facility). You can get more details from James Wong at Team 3000 Realty.  

There are different levels of services under which care home facilities are regulated by the BC Health Authority. Independent living care or retirement homes in BC and elsewhere offer active, self-sufficient seniors to live with others the same age, values and abilities. There are other senior care facilities that provide Assisted Living and Residential Care (access to nurses around the clock to monitor, assess and manage 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. If you need to get financing from a bank other than your own financial institution, you can get the help of James Wong who can recomend you to the Bank Managers he dealt with.

If you have any questions on buying an apartment building or a care home, you are welcome to contact James Wong at 604-721-4817 or send an email to him. 

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