Money, investing, mutuals etc
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I read the other day in the FT that Legal & General were intending to invest into the building of 3,000 homes over the next 5 years. These homes are being built by L&G as they state there is a case for packing together flats with "age friendly" facilities. The venture is described as a "later living" scheme.
Building costs will no doubt be well covered with sales; L&G go on to say they are set to get £5,000 or so of annual service fees, it will also get a 10-15 per cent "deferred management fee" when the occupant dies.
Not a new idea but L&G are a relatively new comer to the retirement market but over time they could see significant and steady income as demand grows from the retirement of the Baby Boomers... The statistics state that the number of over 85-year-olds is set to double by 2041. Already there is a shortfall of homes for nearly 500,000 retired households so the market is ripe to take advantage of with little downside on capital and a future growing income stream for L&G.
Could be a good core investment for any portfolio...!?!
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Looks like a longer-term bet.
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