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What Makes Investing in Medical Real Estate Worthwhile

Wealth Migrate

2017-03-19

What is Medical Real Estate?

Medical or healthcare real estate is a niche market within the larger real estate market and can be described as buildings and/or offices leased to members of the healthcare and medical community. Doctors are generally highly-held community figures, developing long-standing relationships with their patients, which means they aren’t likely to move premises very often.

Why is Medical Real Estate an Attractive Investment Option.

As a medium to long-term investment, medical real estate has proven time and again to be an attractive investment sector within the larger real estate market in the U.S. In fact, the 2016 DLP Piper State of the Market Survey rated the healthcare specialised investment sector as the most attractive for investors in the U.S. This sector is made up of hospitals, ambulatory surgery centres, long-term care, and other facilities such as psychiatric centres.

So what makes medical real estate such a worthwhile investment?

Medical equipment, especially specialised equipment, is heavy and expensive to install. Yet another reason why doctors don’t simply “hop premises.”

The quality of these kind of tenants is generally very high, with long-term leases in place, and the majority of tenants opting to renew their lease when it expires. This means rental forecasts can be more accurately predicted.

The U.S. has an ageing population, which means the amount of money being spent on healthcare, as well as the need for medical services is increasing. Naturally, this also means there is a continued strong demand for medical office space.

These factors combined creates an economically resilient investment, tailored to withstand upheaval in most market conditions, while still being able to perform. In turn, your investment in medical real estate will continue to deliver a quarterly income and valuable capital growth.

What Other People Say

And as if to cement the benefits of investing in medical real estate, Hennie Bezuidenhout, Co-Founder and Chairman of Wealth Migrate, noted “In all the time I’ve been doing medical office suites and day-hospital development in Africa, I’ve never had a day’s vacancy.” A sentiment which stands true for the U.S. market too. So if you’re looking for a solid offshore investment opportunity, with favourable returns, then consider investing in medical real estate.