Childcare assets continue to be hot property for investors!
Childcare assets have been a big winner over the past five years, offering investors security, with long lease terms, high quality tenants and large sites with high land value and on-sale appeal. Attracting investors to the possibility of a secure ‘set and forget’ income that they can sit back and achieve a regular income stream over the next 5, 10, 15 or 20+ years all with fixed increases.
In the past month, six centres located across New South Wales, Queensland and Victoria have been sold for a combined total of $16.6 million. These centres ranged from 27 to 90 license places in size and received yields ranging from 4.27% to 5.78%. This is a remarkable yield, proving the success and profitability of this investment class.
Due to the uncertain future in global markets, investors are reviewing their portfolios, switching from the unstable fluctuation of the stock market to safer, higher yielding direct property investments, such as childcare centres.
Favourable childcare investment conditions are expected to continue. With bi-partisan political support, it can be assumed childcare services will be continually backed by the Australian Government for many years to come. For high returns on investment, childcare assets are proving to be one of the strongest and safest passive-income assets in an investment portfolio today. Discover the real value of developing a childcare centre, talk to the experts that make it child’s play! Contact us now.