If you are a GP looking to invest in a medical centre or similar premises, you are about to unlock a secure income. Investing in medical practices is worthwhile and, with the right support and advice from industry specialists, you can look forward to positive returns.
From searching for the right property to refurbishing the premises and drawing up lease agreements, it’s vital that you work with a property investment consultancy who can guide you on your journey to make sure you’re making the most out of your investment.
Why medical centres are an attractive investment option
Previously, primary care property was a niche sector that did not necessarily appeal to investors. However, medical centres offer secure investment yields and are now usually of a larger size, making them an attractive investment option, particularly for investors looking for new opportunities.
Lately, investors who are generally not in the healthcare sector themselves are curiously looking at doctor’s premises.
This powerful trend includes investors handling the practice’s business affairs and the complex regulatory requirements surrounding the property, leaving doctors to focus on what they do best: practice medicine. Investors can also introduce efficiencies and leverage economies of scale in the process.
Driven by an exceedingly low level of interest rates together with the extremely secure income being offered by this sector, this makes primary care property a worthwhile investment.
Steps to protect your investment
The best way to protect your medical centre investment is to bring a specialist on board who can help you navigate everything from notional rent to sale and leaseback and retirement. Usually, a consultancy has specialised and thorough knowledge of property investment and can work closely with you to maximise your returns and handle the administrative aspects of your investment property – from leasing to rent reviews.
Every medical practice property is different, and investors need to make sure they have someone looking out for them in terms of valuations, regulations, rental reimbursement, and creating and managing leases to protect you and your property.
Another important way to protect your investment is to develop a maintenance programme to help minimise the potential risk of breakdowns and repairs. This ensures that investors avoid any unexpected outgoings as these can affect your insurance premiums and negatively contributes to your Care Quality Commission (CQC) compliance.
How to maximise your primary care property investment
Having an investment in GP Premises is a long-term financial commitment and you want to ensure you are maximising your investment in every way possible.
Here are some options for maximising your property income:
- 1. Many surgeries across the UK lose out on valuable income because their reimbursement is too low. Having a specialist negotiate your Notional rent increases can boost your practice’s income.
- 2. Filling out your CMR1 form to ensure how the property is used is accurately recorded. You’ll need expert advice here to ensure that you fill in the form correctly and make the most out of your potential for Notional rent.
- 3. If you have a pharmacy on your premises, you can review to ensure that they are paying an appropriate rent.
- 4. Renting out surplus space in your premises is an effective way to maximise your property investment income and improve the complimentary services you offer to patients.
- 5. There is significant capital allowance (tax relief) that is available for GPs looking to purchase, refurbish, expand, or develop medical centres.
Why you need an accurate and reliable market valuation
There are several reasons as to why you may require a valuation of your healthcare facility. A valuation is often needed as security for a loan, for mortgage purposes, or if the partnership of a practice is going to change.
In the above circumstances, it is important that you have an accurate and reliable market valuation carried out by a Chartered Surveyor as this is a specialist area of the property market. This surveyor should have experience in the GP practice investment field and should be able to consider the value of the property for use as a practice as well as its worth for other uses.
It is important that you have an accurate understanding of the current value of your medical premises, and this is usually done by combining a market approach and an investment approach. Usually, valuers will utilise comparable evidence to determine the value of your GP premises and will provide you with a detailed report regarding the value that has been determined and the reasons why it is an accurate valuation.
The Primary Care Surveyors difference
You are the expert in medicine, it’s essential that you get the experts in medical property investment in your corner. At Primary Care Surveyors, we have extensive experience and knowledge of the property investment industry, and we work with both new and established property investors to maximise their returns.
From finding the perfect property to conducting rent reviews and negotiating your notional rent, we offer expert advice and support to GP property investors so that they can enjoy their investment income without having to worry about the administrative elements of the premises.
Our services are designed to assist investors to start and grow their property investment portfolio and for those wanting to divest of their property. We advise new entrants to the sector on acquiring healthcare property investments and provide a range of services, including accurate property valuations carried out by our qualified valuation surveyors and ensuring Notional rent is maximised.
What sets us apart from other medical practice surveyors is our thorough knowledge, industry experience, and how we service our clients. Our clients are at the heart of our business, and we never go anything less than the extra mile to provide the best possible service to every client we assist. Combined, our team has over two decades of experience in primary care property matters including rent reviews, valuations, lease consulting, development, and investment transactions.
Making the decision to invest in primary care property is a significant one and we want to be there for you every step of the way with support and advice to help you make each decision pertaining to your investment. To connect with us, visit our website or contact us on 0203 478 9998 or at email@example.com