Investment Solutions
Types of investment opportunities we have to offer
Social Housing
Social housing investment entails investing in our government-backed project to offer housing for vulnerable individuals in the UK. With an average return of 15% investment per annum, Social Housing Group (SHG) usually acquires blocks of apartments or large, rundown HMOs from landlords or developers. These properties undergo refurbishment to meet the standards set by Housing Providers, who then handle all typical renting issues, including maintenance, management, council tax, void periods, and of course tenanting the properties.
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Once refurbished, we allocate these properties to families in need, ensuring steady returns for investors like you. We manage the investment process, while the Housing Providers handle all tenant-related matters, making it a hassle-free experience for investors.
First Time Buyer
Being a first-time buyer refers to an individual or household purchasing a property for the first time. It's often associated with buying a primary residence, such as a house or a condominium, but it can also apply to purchasing other types of real estate, such as investment properties or vacation homes, as long as the buyer has never owned a property before.
First-time buyers typically have access to certain benefits and incentives that are designed to help them enter the property market. These can include government programs offering financial assistance, grants, or tax credits, as well as special mortgage products with lower down payment requirements or more favourable terms.
Live & Invest
The 'Live & Invest' strategy revolutionises home ownership. Instead of simply living in your property, you can utilise it to pay off your mortgage faster and even generate passive income. By renting out rooms to lodgers who contribute towards rent, you can accelerate mortgage repayment and earn extra cash flow. It's like renting out a room, but with a twist – you're earning from your tenants while getting closer to owning your property outright. It's a smart move that benefits both tenants, offering affordable housing, and owners, paving the way to brighter financial security through property ownership. It's a win-win arrangement that leads to a brighter future for all involved.
Buy-To-Let (BTL)
"Buy to let" is a term used when someone buys a property with the specific purpose of renting it out to tenants. Instead of living in the property themselves, they buy it as an investment to generate rental income. The idea is that the rent payments from tenants help cover the mortgage and other expenses associated with owning the property, while hopefully making a profit on top. It's like becoming a landlord, where you own the property and rent it out to others to live in.
Flips - BRR (Buy, Refurb, Refinance)
"Flipping" in real estate means buying a property with the intention of quickly selling it for a profit. The idea is to purchase a property at a low price, make improvements or renovations to increase its value, and then sell it for a higher price, ideally within a relatively short period.
Flippers aim to capitalise on market fluctuations or undervalued properties to make a profit by selling the property for more than what they invested in it, minus any renovation costs and other expenses. It's like buying something, fixing it up, and then selling it for more money, but with houses or buildings instead of smaller items.
Serviced Accommodation (SA)
"SA" typically stands for "Serviced Accommodation". Serviced accommodation refers to furnished properties that are rented out on a short-term basis and typically include services such as housekeeping, cleaning, and sometimes even concierge services. These properties are often offered as an alternative to hotels, providing more space and amenities, especially for longer stays. Serviced accommodation can range from apartments to houses and can be found in various locations, including urban centres, tourist destinations, and business districts.
They're popular among people who are travelling, business professionals, and individuals or families looking for temporary housing solutions.
Serviced accommodation is often listed on various platforms, with Airbnb being one of the most well-known. Other popular platforms include Booking.com, Vrbo (formerly known as HomeAway), and Expedia's vacation rental section.
Houses for Multiple Occupants (HMO)
HMO stands for House in Multiple Occupation. Essentially, it's a property that's rented out to multiple tenants who aren't from the same household, but who share common facilities like the kitchen or bathroom.
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HMOs are common in areas with high demand for rental accommodation, such as university towns or cities. They're often used by students or young professionals who want more affordable housing options.
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Because HMOs involve multiple tenants, there are usually specific regulations and standards that landlords need to meet to ensure the property is safe and well-maintained. These regulations can vary depending on the location, but they often include things like fire safety measures and minimum standards for room sizes and amenities.
FAQ's
Social Housing
How long has the company been running?
Social Housing Group was founded in 2022. Prior to that, our Co-Founders had their own property journeys, running 100s of projects for their own portfolio, leading them to our strategy of Rent-2-Social Housing - in this time Social Housing Group has raised £5.4 million in just over a year.
Why do I receive my money in 90 days and not straight away?
We use a 90-day window to allow for the renovation stage, and for tenants to move in
No! You only have to pay the first initial investment once - anything beyond that is completely hands off, where you reap your rewards on a monthly basis for 3 years. So an example, from a previous investment in Milton Keynes, you would pay £15,100 in one go, after 90 days of making this initial investment, you would receive £645 every single month for 3 years. This gives you a total profit of £23,220.
What are the potential risks?
Investing always comes with risks, but we take steps to minimize them significantly. The main risk is if the landlord passes away. If this occurs, we'll either transition you to another deal to fulfill your contract or renegotiate contracts with a new owner. Another rare risk is if the social housing group faces financial trouble. However, our contracts with landlords and social housing providers are robust, reducing this risk. In the unlikely event of administration, government-backed social housing providers would ensure your payments continue as agreed. Despite these risks, we have plans in place to protect your investment. We work with NoviLaw to safeguard documents and interests, ready to address any unexpected issues swiftly to keep your investment secure.
Will there be any legal or regulatory challenges?
SHG have recently switched our solicitors to ensure a smooth process. Once you decide to move forward, you'll have a 90-day window for renovations and tenants moving in, followed by your agreed monthly payments. It's as smooth as that.
What happens if the property is untenanted?
Regardless whether the property is tenanted, social housing providers are contracted to pay void periods, so it still means you are guaranteed to receive your fixed returns
TAX? Do I need to declare my interest payment?
Your initial investment won't be taxed, and you don't need to declare it. However, any returns or profits beyond the initial investment might be taxable, depending on your situation. It's important to think about your circumstances and talk to a financial advisor to figure out the best steps, as everyone's situation is different.
Do we apply discounts for investing in multiple units?
Yes, we offer discounts for investing in a minimum of 3 units! The exact discount amount needs to be negotiated, but as an example, an investor with 3 units could receive a reduction of up to £250 per unit for the 3+ units.
Are we regulated by the Financial Conduct Authority (FCA)?
No, we're not regulated by the FCA because we don't use financial instruments covered by their regulations. Our strategy, Rent to Rent, doesn't fall under their purview. The FCA typically regulates specific and larger businesses to ensure fairness and consumer protection regarding money matters. However, we are part of the ICO, Property Redress Scheme, and adhere to Anti-Money Laundering regulations.
First Time Buyer
What are the first steps I should take when considering buying a home?
Begin by assessing your finances thoroughly. Understand your income, expenses, and savings. It's crucial to have a clear picture of your financial situation before proceeding. Additionally, check your credit score. A good credit score is essential for securing a mortgage with favourable terms.
What is a mortgage, and how do I get pre-approved?
A mortgage is a loan specifically for buying property. It's essential to get pre-approved for a mortgage before starting your property search. Mortgage pre-approval involves a lender assessing your financial situation and determining how much they are willing to lend you. This gives you a clear idea of your budget when house hunting.
What factors should I consider when choosing a neighbourhood or location?
Consider factors such as proximity to amenities (schools, shops, transport links), crime rates, local schools' Ofsted ratings, and future development plans. Research local council regulations that may affect your property, such as conservation areas or planning restrictions.
Are there any first-time buyer programs or incentives available in my area?
First-time buyers in the UK may be eligible for various government schemes and incentives designed to help them onto the property ladder. These include: Help to Buy: Offers equity loans and shared ownership schemes to help first-time buyers purchase a home with a smaller deposit. First Homes: Provides newly built homes at a discount of at least 30% to local first-time buyers. Stamp Duty relief: First-time buyers are exempt from paying Stamp Duty on the first £300,000 of a property's purchase price (for properties worth up to £500,000).
How much do I need for a down payment?
In the UK, the down payment, also known as a deposit, typically ranges from 5% to 20% of the property's purchase price. The larger the deposit you can provide, the better your mortgage options are likely to be, as you'll need to borrow less money from the lender.
What additional costs should I budget for besides the down payment and mortgage?
Buying a property in the UK incurs various additional costs besides the down payment and mortgage. These can include: Stamp Duty Land Tax (SDLT): A tax on property transactions. The amount depends on the property's purchase price and whether you are a first-time buyer or not. Solicitor fees: Legal fees for handling the conveyancing process, including property searches and paperwork. Survey fees: Costs associated with having a survey conducted on the property to assess its condition. Ongoing expenses: Budget for ongoing expenses such as maintenance, insurance, council tax, utilities, and service charges (if applicable).
How long does the home buying process typically take?
The home buying process in the UK typically takes around 8-12 weeks from having an offer accepted to completing the purchase. However, this timeline can vary depending on factors such as the complexity of the transaction, the chain involved, and any delays in obtaining mortgage approval or conducting surveys. Work closely with your solicitor and mortgage lender to ensure the process runs as smoothly as possible.
What happens at closing, and what should I expect?
On completion day, your solicitor will exchange contracts with the seller's solicitor, and funds will be transferred to complete the transaction. You will then receive the keys to your new home and can officially move in.
What are the ongoing costs of homeownership, such as property taxes and maintenance?
Budgeting for ongoing expenses is essential to ensure you can afford to maintain your property after purchase. These ongoing costs include: Mortgage payments: Repayments towards your mortgage loan. Insurance: Building and contents insurance to protect your property and belongings. Utilities: Gas, electricity, water, and internet bills. Maintenance: Budget for regular maintenance tasks such as servicing boilers, repairing fixtures, and redecorating. Council tax: A local tax paid to your local authority based on the value of your property.
Are there any red flags I should watch out for when viewing properties?
During property viewings, watch out for any signs of potential issues such as: Structural problems: Cracks in walls, uneven floors, or signs of subsidence. Damp or mould: Look for damp patches on walls or ceilings, musty smells, or peeling wallpaper. Maintenance issues: Check the condition of fixtures, fittings, and appliances to ensure they're in good working order. Neighbourhood concerns: Research the local area for any factors that may affect your enjoyment of the property, such as noise pollution or crime rates.
How do I know if a property is a good investment for resale value?
When considering the investment value of a property, factors to take into account include: Location: Properties in desirable locations with good transport links, amenities, and schools tend to hold their value better. Market trends: Research local property market trends to assess whether property prices are likely to increase or decrease in the future. Potential rental income: If you're considering renting out the property, research rental prices in the area to estimate potential rental income. Property condition: Assess the property's condition and potential for future improvements or renovations that could increase its value.
What is stamp duty and do i need to pay as a first time buyer?
Stamp Duty Land Tax (SDLT) is a tax paid when buying a property or land in England and Northern Ireland. The amount of stamp duty you pay depends on the purchase price of the property and whether you're a first-time buyer. First-time buyers in the UK are exempt from paying Stamp Duty on For first-time buyers in England and Northern Ireland, stamp duty is not payable on the first £300,000 of a property's purchase price. Thereafter, a rate of 5% applies to the portion between £300,001 and £500,000. Properties priced above £500,000 are subject to standard stamp duty rates.