Big returns from investing in the care sector

Over on the Nailsworth website this week someone has been eagle-eyed and spotted an article in the Guardian shedding some light on the fees charged by those who provide care and education for troubled children.

The article talks about the charges made by those supplying the services, the profits in some cases running at £600k per annum for a four-bedroomed home.

Polly Toynbee writes;

“Here’s the offer: a phenomenal 18% return guaranteed in one year, with your investment safely secured on a property (though in reality nothing is ever that secure). What is the business? Caring for the most disabled, disturbed and needy children in residential homes.”

A portfolio manager joked that “the naughtier children pay more.”

The type of care described sounds different from the Steiner style of education, but there is an indication of the sums of money involved within the sector.

With two care providers for damaged children well-known in this area – Novalis and Ruskin Mill – currently expanding their range of residential property, to the dismay of local people, it is suggested on the forum that such profits could provide an explanation of where some of the money for property purchases comes from, and why the organisations are so keen to expand.



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