Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

buying a nursing home.

Options
  • 27-04-2012 10:16pm
    #1
    roozer
    Registered Users Posts: 35 ✭


    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?


Comments

  • Options
    #2
    roozer
    Registered Users Posts: 35 ✭roozer


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


  • Options
    #3
    antoinolachtnai
    Registered Users Posts: 9,799 ✭✭✭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.


  • Options
    #4
    Sappa
    Registered Users Posts: 885 ✭✭✭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.


  • Options
    #5
    MagicRon
    Registered Users Posts: 138 ✭✭MagicRon


    roozer wrote: »
    i am considering buying a nursing hoe with my two other business partners.

    What part of the country?


Advertisement