Recession Proof Investment
Growing up my grandfather always said “Michael, if you want a stable career go into healthcare, people will always get sick and need care”. I took this to heart as a child and years later in my thirties I find myself in a career where healthcare is my specialty. What my grandfather said was true. Healthcare, is a business that will never die and as long as I am involved in the field, job security is inevitable.
So, what does that mean for those looking for a long term stable investment? Well as long as they have their money in healthcare their money will be safe and appreciate, right? But that isn’t always the case medical and medical support companies rise and fall. Though there is a way to have your cake and eat it too.
The development and discovery of new technologies along with more the health-conscious way of life is allowing people to live longer and longer. With the increase in demand for health care services attributable to aging baby boomers, stakeholders see great potential for medical office buildings – a specialty that many agree may be recession proof. This rise in the population of our elderly coupled with the Affordable Care Act gives good reason to invest in medical real estate.
Look at the historical returns with Healthcare REIT’s. According to John Thomas, president and CEO of Physicians Realty Trust. “In today’s market—and this change based on interest rates—the least risky asset in healthcare real estate is medical office buildings. They’ll typically demand 6 to 7 percent yield on an investment. Sometimes it’s 5 percent, sometimes it’s 10 based on a certain situation”.
While medical properties require particular substructure, and can be administratively exhaustive, tenants vary and this permits stakeholders an eclectic diversity of tenants to choose. Although no asset is really recession proof healthcare property is one that is a very safe bet.
Source-http://healthcare.dmagazine.com/2015/08/04/conversation-with- john-thomas- talks-about-recession-proof- reits-and- the-dallas- market/
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