Semi-detached house for sale in Hucclecote Road, Gloucester GL3

The investment works through a joint venture (jv) with Housing Provider who have the contract with the housing association.

Each investment is for 1 x property that will house either 4 or six people, you (the investor/lender) enter in the jv with Housing Provider (the borrower) and then Housing Provider take a 5 year lease on a property and do a full refurbishment and furnish the property, gain all HMO licences then offer it back to the Housing Association.

The Housing Association then take the property on a fully funded 5 year lease from Housing Provider. They take a drawdown of funds from the government for the cost of the lease that will run the full term. They don't then pay this directly out to Housing Provider but pay a month fee of £700 over and above the ground rent of the property that Housing Provider have secured. As an example, if the rent was £2000 per month (pcm) they will pay £700, out of that money £100 pcm goes to a management company installed by the Association and £600 pcm goes to you the investor and £2000 to Housing Provider to pay the ground rent. The payments last for 60 months i.e. 5 years.

Total returned to you the Investor is £36,000 which is made up of all your capital back and repayment (30% annual return & 150% compounded ROI over the 5 years).

Key features:
Income generating investment
Hands-off investment
Government-backed income
No void period
No bills
No maintenance
No loans – no interest to pay