Aged Care

With Australia’s ageing population creating a growing demand for aged care facilities, investing in aged care property has become an increasingly attractive option for investors. But what makes this sector so appealing, and how can you ensure you make the most of this opportunity?

What is aged care property?

Aged care properties are specialised facilities designed to accommodate older Australians who need varying levels of care and support. These facilities can range from independent living units (ILUs) in retirement villages to high-care nursing homes with specialised services such as dementia care.

These properties are often operated by experienced aged care providers who lease the facilities on long-term agreements, providing investors with consistent income.

Recent trends in the
aged care property sector

The sector is experiencing increased investment in premium facilities that offer a higher standard of living, with amenities like private gardens, wellness centres and personalised care plans.

There is also a strong push towards integrating technology, with innovations like smart monitoring systems and telehealth services becoming common.

Regional Australia is also seeing an increase in aged care developments, as regional cities experience population growth and rising demand for localised care options. Additionally, government reforms in aged care funding and compliance are encouraging providers to modernise their facilities, creating new investment opportunities.

What is the future of
aged care?

The Treasury’s Intergenerational Report 2023 forecasts that Australia’s population will age significantly over the next 40 years. The number of people aged 65 and over is projected to more than double, while those aged 85 and over will more than triple. Remarkably, the population of centenarians is expected to grow six-fold.

As Australia’s senior population continues to grow, demand for aged care facilities will only increase. Investors who position themselves now can benefit from this long-term growth.

To maximise your return on investment, consider targeting properties in high-demand locations with growth potential. Upgrading older properties to meet modern standards can justify higher rents and attract a more reliable tenant base.

Professional property management can also help ensure your boarding house operates efficiently and remains compliant with local regulations.

Why buy
aged care property?

Buying aged care property offers a range of benefits that can make it an appealing investment option.

One of the most significant advantages is the reliability of tenants. Aged care operators are typically well-established businesses with long-term leases, providing predictable rental income for investors. These leases often include regular rent reviews tied to inflation, ensuring income growth over time.

The sector’s resilience during economic downturns is another key benefit. Aged care is an essential service, meaning demand remains stable regardless of broader economic conditions.

Key factors to consider when
buying an aged care property

When investing in aged care properties, there are several factors to keep in mind.

Consider the demographics of the area – regions with an ageing population or planned infrastructure developments often present the best opportunities.

The location should also cater to the needs of the ageing population, with easy access to healthcare, public transport and other essential services.

The facility’s design, layout and condition should also be carefully assessed. Modern amenities, sustainable features and compliance with current regulations will not only attract tenants but also future-proof your investment.

It’s also important to evaluate the operator’s track record. A reputable operator with a history of providing quality care can significantly reduce investment risks.

Finally, review the lease agreement in detail, paying attention to the length of the lease, rent escalation clauses and the financial stability of the operator.

To maximise returns, focus on properties with strong tenant covenants and high occupancy rates. Properties with room for expansion or upgrades can also offer significant long-term benefits. Partnering with an experienced buyer’s agent, like Costi Cohen, can help you identify high-performing properties and mitigate potential risks.

Why buy
with Costi Cohen?

Investing in aged care property without expert guidance can lead to costly mistakes. Navigating complex lease agreements, understanding regulatory requirements and assessing operator quality are challenges that inexperienced investors may struggle to manage.

Costi Cohen offers a tailored approach to property investment, ensuring you make informed decisions that align with your financial goals. Our team conducts comprehensive market analysis, identifying aged care investment opportunities in high-demand areas with strong growth potential. We also perform detailed due diligence, reviewing tenant covenants, lease terms and property conditions to minimise risks and maximise returns. From property selection to negotiation and settlement, we handle every step of the process, giving you confidence in your investment.

How to finance an
aged care property investment

Financing an aged care property typically involves a mix of commercial property loans and personal equity. Most lenders require a deposit of 30-40%, so it’s important to assess your borrowing capacity early.

Working with a finance broker who understands the aged care sector can help you secure competitive rates and tailored loan terms. Some lenders specialise in aged care properties, offering products designed to meet the unique needs of this market. 

Explore some of our
Aged Care Purchases

No posts found!

We would love

to hear from you

Costi Cohen — Australia’s premier commercial real estate consultants

Whether you’re a seasoned investor or new to the market, our expertise will pave the way for your success in commercial real estate. We’ve looked after more than 250 commercial properties and are prepared to help you discover your next investment opportunity. 

No matter your timeline, budget or preferred location, the expert team at Costi Cohen can help you find a commercial property that aligns with your needs. We invite you to get in touch with our team for a consultation today.

Please fill in the form, or call us on –

Contact Us

Please enable JavaScript in your browser to complete this form.
Already know what you are looking for?