The Future of Medical Real Estate in Australia – A Rundown
Investors are always looking for ways to diversify their portfolio with several pivoting their attention to medical real estate in Australia. Unlike traditional real estate investing, medical real estate investing provides consistent strong returns to investors, even during tough economic times.
Medical real estate investing is also attractive to many investors because of the long leases. Long leases mean stable income streams. In addition, medical real estate is less sensitive to the changes in the economy, either domestically or internationally.
Healthcare in Australia
There is a growing demand for healthcare in Australia. This is mostly because of the population growth and an increase in the ageing population. The elderly people in Australia drive more demand for healthcare services.
By 2025, most baby boomers have already retired and by 2036, Australia is forecasted to have nearly 50% more people older than 55, increasing the mature population from 6.4 million in 2016 to 9.4 million.
Additionally, 78% of the population over the age of 65 years have chronic diseases.
An increase in the ageing population means an increase in the demand for healthcare services.
In addition, the growing population in Australia can increase the demand for healthcare services. More people will need medical attention, increasing the demand for healthcare.
What Does This Mean for Investors?
The increasing demand for preventive and aged healthcare services provides an opportunity for investors. Medical real estate investors are more likely to retain their tenants for longer.
Medical practitioners will always have patients. Therefore, they are more likely to stay in the same location for several years. And they can afford to pay their rent. That is why investors will never have to worry about losing their tenants.
Healthcare property appreciates in value. The fluctuations in the real estate market cannot affect medical real estate. Therefore, investors can invest in medical real estate and still earn great returns. In fact, it is easy to sell healthcare property.
For new investors, they can easily find medical practitioners to rent their healthcare properties. Many healthcare professionals are starting their own medical practices. They prefer to rent healthcare properties instead of buying them. So, new investors can still get new tenants quickly.
Where Should I Start?
Medical real estate is attractive to many investors due to the increasing demand for healthcare services. However, it is still risky for investors to invest in medical real estate. It is, therefore, important for investors to seek specialist advice before investing in healthcare properties.
If you have decided to invest in medical real estate in Albany, Western Australia, contact Realforce Property with any questions you may have on medical real estate.