Childcare property development has gained popularity over the years since it has immense benefits over commercial real estate. Developing childcare property is one of the smart decisions for you as an investor right now. This is because every parent is looking to find the perfect childcare service that offers the best quality services for their children.
Steady growth in demand
Childcare property development has been on demand due to the rise in population. Statistically, it shows that there is a 39% increase in the number of children enrolled in a childcare facility with a 26% increase in the number of childcare facilities. This shows that there is a gap in the property development fit for children. The demand for the facilities has also been on the rise due to an increase in women working force. This has forced mothers to live their children in childcare facilities. Hence, this has led to an increase in demand for quality childcare facilities. Additionally, the government has been very keen on supporting the childcare facility development. This has led to investors feeling confident in investing in this sector.
Government support
The government has been on the forefront in supporting the childcare facility development. In doing so, the government aims at encouraging people to go back to work by increasing the availability and accessibility of childcare services. For this reason, it makes the parents be at ease knowing that their children are well-taken care. Additionally, the government aims at increasing competition in childcare services. This will lead to an improvement in the quality of services offered to your children. With the government support, you as the investor has full confidence in investing in childcare services.
There are long-term tenancy agreements
Commercial assets have a tenancy agreement lease which lasts an average of ten years. For childcare facilities, the tenancy agreement lease lasts to between 15 and 20 years. This provides more stability and certainty for you as an investor. In addition to this, the lease shows that operators will be responsible for paying insurance covers, property taxes, and maintenance. This will reduce a load of maintenance fee to you as an investor and landlord. For this reason, investing in childcare facility development ensures that you as the investor has a steady income with low risk. Not to mention the fact that you will have capital protection for your investment.
Strong yields history
Historically childcare services have seen a higher yield throughout which shows you that this investment will pay off. As a parent, you will always want your child to have the best childcare service. For this reason, the childcare facilities have been on the rise, and their yields have been increasing.
Conclusion
Investing in childcare property development can give you a steady income and yield good results. This can be a good opportunity for you as an investor.
