Supported Living Returns, Honestly

Long leases, headline yields and the risks the adverts skip

Supported living is heavily advertised with long, index-linked leases and hands-off income, and the adverts tend to skip the risks. This book examines the returns honestly. It explains why the covenant matters more than the yield, how to measure net yield on all your money, the gap between the investment value and the bricks-and-mortar value, the break-even void and the danger of leverage. You will learn where to find an honest view of the building's value, the organisation behind the lease, local demand and how the rent is actually paid. The book explains why contractual rent is a ceiling rather than a floor, how rent reviews, rent-free periods and break clauses work, and why a guarantee is only as good as its guarantor. The cost chapter challenges the full repairing and insuring promise, and the deal is stress-tested against provider failure, funding changes, refinancing and concentration. A worked example reaches an honest verdict. Next in this series: “Care Providers, CQC and Property Standards”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void, the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.