Improvement

Improvements may be made at the investor's sole budget and such improvement must not be too obtrusive and inconsistent to the ward class. These improvements are always subjected to the approvals of the home. The aim of such approvals are always aimed towards ward class consistency and enhanced care. 

Simple improvements like getting a fully automatic electric ward bed, changing curtains (correct colour scheme), a telephone system, small fan, small fridge, getting a portable fully functional tablet TV (with blue-tooth ear pieces) or a nice furniture (fitting) are mostly allowed.

Specific monitoring devices are not allowed unless it is approved by the doctors or registered nurses that such a device is suitable for use by the specific client. Investors are advised not to intervene with the medical requirements of the ward bed.

In the event such a device is needed as advised by doctors and / or nurses, it is the responsibility of the home to acquire the device. Investors should not be worried over the rental of the ward bed simply because they presume such devices are critical to the renting out of the ward bed. From the home's experience, it never was. It has always been the quality of care delivery that is the key to the success in renting out the ward bed.

Specific Assignment

Each investment contract is tied directly to a specific ward bed, similar to a property title deed.

Its location and ward bed number is permanently assigned.

It is in every interest for both the home and the investor to keep the ward bed rented.

Priority is always given to an invested ward bed to be rented out first. That way, the home not only get continuous and consistently good reviews from the investors,  it will also ensure that there is no breach of fiduciary duty of the home in trying to keep the ward bed persistently rented.

Over time, some ward beds simply become non-rentable or tenable. When that happens, investors of these ward beds may choose to change their ward beds to better tenable ones.

An administrative fee of 25% of the preceding investment or the forward investment (whichever is higher) would be levied. Once this fee is paid, the home must allow the investor to change to a new ward bed.

Sometimes, the investor simply wants to invest / change to another newer ward bed. Similar term as above applies. The payment of an administrative fee of 25% would be sufficient compensation to the home and the home must allow change made to the physical location of the ward bed.

As part of the ongoing improvement to the home and ward, the  physical arrangement of the ward bed may be changed and the investor might not like the new physical arrangement, the investor is then allowed a one-time change to another similar bed in the same ward class at no fee. If no such ward bed is found, the investor should accept the new physical arrangement. Under no circumstance that the home aims to be biased toward any individual investor as it is the goodwill of the home that is at stake. It is in fact the one and only aim of the home that the investor would one day choose to be a client of the home, enjoying all the benefits of prior knowledge and determination.

In the event that investor wanted totally out, then the terms in the divesting policy will apply.

In dealing with this change, it is recommended that both the home and the investor should adopt a reasonable attitude towards resolving a change program, bearing in mind that it is always for the betterment in the comfort of the newly renovated home.   

Caveat Emptor

Caveat emptor is Latin for "Let the buyer beware" (from caveat, "may he beware", a subjunctive form of cavēre, "to beware" + ēmptor, "buyer"). Generally, caveat emptor is the contract law principle that controls the sale of real property after the date of closing, but may also apply to sales of other goods. 

The phrase caveat emptor and its use as a disclaimer of warranties arise from the fact that buyers typically have less information about the good or service they are purchasing, while the seller has more information. The quality of this situation is known as 'information asymmetry'. Defects in the good or service may be hidden from the buyer, and only known to the seller. A common way that information asymmetry between seller and buyer has been addressed is through a legally-binding warranty, such as a guarantee of satisfaction. But without such a safeguard in place the ancient rule applies, and the buyer should beware.

Investing in a ward bed is a new class of investment. Investors are advised to seek independent professional advice before engaging in this class of investment.

Hopefully in good time, this investment class would be rated by investment advisory agencies around the world. At that time, investors can relax a little further, but caveat emptor remains the cornerstone contract principle in all investing.    

Investment Growth

Growth investing is a style of investment strategy focused on capital appreciation. Those who follow this style, known as growth investors, invest in companies that exhibit signs of above-average growth, even if the share price appears expensive in terms of metrics such as price-to-earnings or price-to-book ratios. In typical usage, the term "growth investing" contrasts with the strategy known as value investing. 

However, some notable investors such as Warren Buffett have stated that there is no theoretical difference between the concepts of value and growth ("Growth and Value Investing are joined at the hip"), as growth is always a component in the calculation of value, constituting a variable whose importance can range from negligible to enormous and whose impact can be negative as well as positive. Buffet has recognized the influence of his business partner Charly Munger on this view, which is best expressed by the famous Buffett saying "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price".

The valuation of the investment is pegged to the current valuation of the ward bed (please refer to the current valuation entry).

If nothing special happens, the investment is expected to grow by 2-5% per year. It is therefore not unexpected that the investment value may hit 2 times its original investment in 20 years' period.

Utility

Utility is a measure of preferences over some set of goods and services. A good is something that satisfies human wants. Since one cannot directly measure benefit, satisfaction or happiness from a good or service, economists instead have devised ways of representing and measuring utility in terms of economic choices that can be measured. In the simplest sense, economists consider utility to be revealed in people's willingness to pay different amounts for different goods.

The investor may choose to utilize the ward bed him/herself. In such eventuality, the discount applicable to the investor is 30% of the gross ward bed rental per month (This is better than the 25% investment returns given for the ward bed). There would be no investment returns given during his/her period of stay.

Current Valuation

Valuation is the process of determining the current worth of an asset or a company; there are many techniques used to determine value. An analyst placing a value on a company looks at the company's management, the composition of its capital structure, the prospect of future earnings and market value of assets.

The current valuation of each ward bed is defined and marked at 50 times that of the rental of the ward bed per calendar month.

Over the years, if the rental of the ward bed is increased, the current valuation would also be increased in-step.

For example, if the current ward bed rental is $2,000.00. Then, the current valuation would be marked at $100,000.00 ($2,000.00 x 50).

In the event, the ward bed rental is increased to say, $3,000.00. Then, the current valuation would be marked at $150,000.00 ($3,000.00 x 50).

Redemption - Divesting Policy

Redemption by the investor can be made in 1 of the 2 options listed below:

Option 1:   Through the home, the redemption rate is 50% of current valuation. The general processing time is 1 month from date of redemption. There is no other administrative charges. Once the home has obliged its payment, there is no more relationship between the investor and the home henceforth.

Option 2:   Through a third party. The assignor can transfer his/her share to a third party assignee, whose transfer value is negotiated in privacy between the assignor and the assignee. Once transacted, the home would levy a transfer fee of 1% of the transfer value each from both the assignor and assignee or if the transfer value is lower than its original investment price, $10 per thousand of its original investment. The home's register is updated henceforth.

As option 1 is greatly unfavourable to the investor, the investor is advised to procure his/her own assignee privately.