Healthcare Real Estate Companies
Healthcare Real Estate Companies
Life in our world today has a lot of advantages due to the advancements that have been made in the society. People take up various professions, get trained to function in those professions, and contribute to the society. All these professions are necessary for the society to function properly.
One of the fields that are crucial in any given society is the healthcare service whose primary duty is to attend to people’s health needs which are varied. It is a very large industry on its own with many sub-branches that attend to various aspects of this very important service.
It is often said that no one is an island as every individual needs to work together with other individuals to attain specific goals in the society. This same principle applies to the various professions in the society too as sometimes, though with different functions, they have to work together or rely on each other to meet certain goals. This is the case with the current trend of healthcare real estate companies.
Understanding Real Estate?
Real estate or real property, generally refers to land and everything beneath and above it. Thus, whoever owns any particular piece of land owns everything that is beneath and on top of it. This is to be distinguished from personal properties like cars, jewelry, clothes and so on. You can read more on it here.
Now, real estate is a big business that usually runs into millions, this is why a lot of people are into the business. Generally, in this business interest drives up value thus, the practice usually is that whenever there is an increase in the interest in real estate properties in a particular area, people in this line of business move in to buy. This basically is an investment in the sense that over time, the value of the real property purchased would appreciate and they would make a profit. Also, some structural adjustments and additions might have made by these investors which would add to their profit margin
Due to the various professions in the society today, many real estate agencies choose to specialise in one area that suits them well like family houses or corporate buildings etc. This is even more so if the organisation is not big enough or doesn’t have enough staff to pursue the various property deals that are available. One such niche that is becoming very popular today in the United States is healthcare real estate.
What Really Is Healthcare Real Estate?
In simple terms, it is the practice of leasing outbuildings for medical uses. These buildings might initially be owned by hospitals, private individuals, universities or other organisations. This practice is driven by the increasing need for health services by an ever-increasing population.
Some of the health services that people need sometimes go out of the traditional medical service (that is hospital patient kind of thing) that might not fit in within the traditional medical care need. An example of such a healthcare service would be fitness centers, medical research centres, old people’s homes etc. Another factor that drives this practice is the ever increasing technological instruments that aid health activities making it unnecessary to always use or visit hospitals.
Why Invest With Healthcare Real Estate Companies?
Obviously, people and organisations don’t engage in certain ventures unless it is profitable. After all, the aim of many business organisations is to make a profit. Since there is profit to be made from investing in healthcare real estate, it is therefore, a great choice for them. There are two (2) major reasons why you should get involved in this type of investment, they are:
It Is a Huge and Growing Market
To get an idea of just how huge this market is, consider this; as far back as 2016, healthcare REITs were estimated to be worth about a whopping $1 trillion. Let that point sink in and then consider that this was pre covid (because, post covid medical and health services will be more fragmented than it ever was as these services will have to be more decentralised).
Furthermore, add to this the fact that the population of adults that are over 65 and would be in need of care is set to double over the next 45 years. This is the right investment to make.
It Is a low-Risk Investment
It has to be understood that every investment has its own fair share of risks, add also the fact that this is a growing market that its full potential is not yet fully ascertained beyond analysis and predictions. However, what can go wrong? Economic recessions don’t affect healthcare (though it might affect the purse of the individual) health will always be primary, a ‘must’ even. Thus, investing in healthcare real estate is one of the safest investments one can make, you can see an example from recent events at https://www.healthcarefinancenews.com/news/healthcare-real-estate-remains-attractive-investors-despite-covid-19-pandemic .
The saying that health is wealth is a fundamental truth that one cannot really argue against. This is because nothing is as fundamental as the health of an individual.
The niche that real estate companies have found in healthcare is one that is going to be profitable for all involved. This makes it such that investing in health will also bring wealth.