buying a nursing home.

roozer

i am considering buying a nursing hoe with my two other business partners.
Came across this story today which interested me.
http://www.irishtimes.com/newspaper/breaking/2012/0206/breaking41.html

Not sure I understand what the original agreement was or the reasons for it. Did Dr O'reilly et al make no initial investment but sign a contract to say they would take over the nursing home in ten years?
What are the advantages of doing this?

"Dr Vasudha Jondhale, promoted the development of a residential care facility for elderly persons as a tax efficient investment in summer 2000"
I assume this is in relation to the nursing home scheme tax relief. How does that work in the above example?

roozer

To the mods, perhaps this would be better suited to the investment section?

antoinolachtnai

It is what's called a 'put and call' option as mentioned. The advantage in this case, according to the report is that it gave the Bank someone extra to have recourse against if things went wrong. The upside is that the purchasers get the property at the end at what could be a very good price.

Nursing homes had good tax breaks and this drove a lot of development.

Sappa

antoinolachtnai wrote: »

It is what's called a 'put and call' option as mentioned. The advantage in this case, according to the report is that it gave the Bank someone extra to have recourse against if things went wrong. The upside is that the purchasers get the property at the end at what could be a very good price.

Nursing homes had good tax breaks and this drove a lot of development.

A huge reason why so many developers got into nursing homes were the tax breaks,profit is hard to take out of these businesses.
Very strict protocols re staff quota per resident,most are cutting corners and legislation is getting rightfully tougher on the care industry.

MagicRon

roozer wrote: »

i am considering buying a nursing hoe with my two other business partners.

What part of the country?