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What These Properties Will Give You As An Investor
Multiple Developments Available – Showcased below is Old Road
✔ Location – Ashton in Makerfield, Wigan, Greater Manchester
✔ Strategy – Social Housing HMO
✔ Finance-able – Cash Buyers Only
✔ Name of The Development – Old Road
✔ Est. Development Completion Date – Cash flowing from day one. Already refurbished,tenanted and income producing
✔ Purchase Prices Starting From – £120,000
✔ Rental Yields – 8.9% – Rental income £10,712 per annum NET (lease agreement 5 years – fully managed – maintained up to £5k per annum by the social housing lease provider)
✔ Discount – The properties are sold on a fair market value which represents the refurbishment to HMO standards and the social housing lease agreement.
✔ Sourcing Fee – Only £500 to reserve + £2,500 on Exchange. Total sourcing fee £3,000
Located in Ashton in Makerfield in Greater Manchester, Old Road is a fantastic cash flowing rental property.
Unlike many rental properties which are gross rental returns, because of the Social Housing rental agreement / lease this property delivers a NET return with the only running costs being building insurance.
The rental income achieved on the property is NET after the running costs, so the property is fully managed without any further payments to letting agents, it is also maintained up to £2k per item and £5k per annum and having recently undergone a refurbishment to ensure the property is up to full HMO standards this should give you peace of mind that the property is looked after from day one.
In addition unlike other HMO’s (houses of multiple occupation) there are no utility bills or council tax to pay, so your rental income is much easier to predict and plan.
A truly hands off property deal that is sought after from overseas and local investors alike.
Old Road, Ashton in Makerfield, Wigan, Greater Manchester
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3 Year Rental Guarantee
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You own the property outright in your name for full control
Varying options to invest from profit share to straight interest return
Enquire About This Property Now
More About Social Housing HMOs
What Is An HMO?
HMO stands for House In Multiple Occupation. Most commonly an HMO is a property where individual tenants are each renting out their own bedroom and sharing communal facilities.
So an HMO is a property with multiple tenants who share some communal spaces. These might include a lounge, or a kitchen, or bathrooms; it depends entirely on the layout of the house.
What Is A Social Housing HMO?
A social housing HMO is an HMO that is run with a particular tenant profile in mind; social housing tenants.
How this typically works is the property owner will lease the property to a charity, housing association, or for profit company/organisation, who will, in turn, manage the property and utilise it for their own housing demand; providing accommodation and support for their tenants.
A Typical Rental Term
What we usually look for in a social housing HMO project is to lease the property to a company, a charity or a housing association for a period of three to five years.
Social Housing HMOs – The Tenant Profile
Tenants in social housing HMOs tend to be people who require some kind of on-going support from organisations or support workers.
They could be people with mental or physical disabilities. They could be people who are seeking asylum.
Most likely these types of tenants will not be in full-time employment or in education.
Demand and Location
The organisations that rent social housing HMOs are typically housing associations, charities and occasionally for-profit private companies. Each organisation will have different requirements determined mostly by the needs of their tenants and service users.
As such the demand for social housing HMOs is very location specific. There needs to be an organisation operating in the local area that requires these types of properties. In turn organisations such as this will be drawn to an area that has a requirement for them to be there.
Social housing HMOs are not needed everywhere and, as such, this investment strategy will not work in every location.
But, in the right location, the rental yields for this kind of property are fantastic and there are many other benefits to this kind of investment as well.
Social Housing HMOs – A Hands Off Investment
What you will typically find with this kind of property is that once you have a lease in place with an organisation, your work is pretty much done.
They will manage their tenants and take charge of making sure that the house is occupied.
Zero Void Periods, Zero Arrears
They will also underwrite the rent which means that you get paid regardless of what happens. If the end tenant can’t pay the rent, or if the house is under occupied, then you, the property owner will still receive what’s owed to you under the terms of the lease.
So with this property, investment strategy there are zero void periods and zero arrears and it is because of this that we have found that, for rental return, social housing HMOs out-perform all of the other property investment strategies that we currently deal in.
With social housing HMOs, once a lease is in place, the property owner doesn’t need to worry about tenant management and their rental income is assured.
Often you will also find that a certain amount of maintenance will also be covered.
It depends on the organisation and the terms of the lease but a lot of companies will cover maintenance costs up to a certain amount per year or a certain value per item.
Putting It All Together
We have found investing in social housing HMOs to be fantastic. The guarantees on rent, management and maintenance have meant that we know exactly how much we will be receiving over a given time period. This means we have been able to really narrow down on cash flow and the need for a contingency budget is less pressing.
Also, these types of properties are very hands off. They are pretty much set and forget. You negotiate a lease and then that can be pretty much it.
Our Social Housing HMO Deals
Although we only feature one social housing HMO deal on this page we have a number of different properties currently available.
These properties are already refurbished and tenanted, with a lease already in place with a social housing provider.
They are all ready to go and income generating.
For more information simply get in touch – give us a call, or drop us an email – and we can show you what we have available and talk through whether this property investment strategy is going to be right for you.
Read More About Investing In HMOs On Our Blog
- The Cases For And Against Investing In HMOs in 2017
- The Complete HMO Property Investment Strategy For Landlords
- How Not To Fall Out With Your Refurbishment Contractor
- What Is Best Practice For Room Sizes In An HMO Property?
- Finding the Best Place To Invest In An HMO
- Why You Should Speak To Your Local HMO Officer Today
- 2 Quick Changes That Will Make Your HMO More Energy Efficient
- A Complete Introduction to Fire Safety in HMOs
- Do I Need To Provide A TV (And TV License) In My HMO?
- 4 Must Have Checklists For Your HMO Refurbishment Success
- What Is the Best Tenant Profile For An HMO?
- Does My HMO Property Need To Include A Communal Lounge?
- How Many Bathrooms Do I Want In My Next HMO Property?
- HMO Design: Larger Bedrooms Vs. En Suite Bathrooms
- Don’t Make These 5 Critical Mistakes When Investing in HMOs
- 4 Unbeatable Tips For Adding Value To An HMO Property
- How Big Do The Rooms Need To Be In An HMO?
- The Ultimate HMO Casestudy: Which HMO Strategy Gives The Best Returns?
2) High Yields
1. Why Buy Our Deals
Let’s be honest.There’s hundreds of websites selling ‘property deals’ and ‘investments’ across all kinds of locations and all kinds of styles, new builds, off plan, below market value, HMO’s (houses of multiple occupation) and even straight forward Vanilla Buy to lets.
But which one should you choose and why are ours any different?
And importantly why do our deals make better investments?
Well simply put, it’s because we focus on 3 core elements before any property is even allowed to make our shortlist of available deals and before we will put our name to them and offer them to clients.
High Yields. In Growth Areas. Covered with Our 3 Stage Guarantee.
Unlike many property companies or property sourcers, we take a very different approach.We don’t stack property deals high and sell on volume simply be a developer asks us to.
We are a boutique company. We focus on quality and hand pick our investments to ensure any property we list for our clients has high rental yields, is located in a growth area (population & employment growth is increasing in the town/city) and is covered by our 3 stage guarantee.
So how does this work..?
2. High Yields
With the property market constantly changing it’s important to focus on the one factor that remains consistently important to your bottom line, and that’s cash flow.
This is an easy metric to compare deals by looking at the headline rental yield.
Although there are two yields to consider… NET & GROSS.
These are very different.
Many deals you see will be Gross yields and this is also true for any Vanilla buy to Let and even some HMO’s that we list.
That’s because judging the costs of running the property can vary deal to deal once you factor in management, maintenance, and other incidentals.
If we list a property with a Gross Yield they won’t be less than 6% Gross and many of our deals are 8%+.
However uniquely we also present some of our deals as NET returns.
This is absolutely unique to the market and we are able to do this because of the contracts and agreements we have in place with the managing agent on our Social Housing deals as they come with a 5 year fully managed lease and also on some of our Corporate let deals.
So you don’t have to worry about void periods or management costs.
This is a winning formula and why we like them.
3. In Growth Areas
Capital growth is difficult to predict and even gambling on traditional growth areas like London, relying on house prices continuing to rise is no guarantee of growth.Property like any investment carries risks and market prices can vary.
Property like any investment carries risks and market prices can vary.
However, we can (with clever and in-depth due diligence) still make sure we give ourselves the best possible opportunity to benefit from growth.
From personal experience of investing in the North West I’ve seen prices change and sentiment sway on which is the next ‘up and coming area’ and which is ‘about to boom’.
It’s easy to get distracted and lose focus on these possible bubbles.
So we like to bring it back to basics.
The 3 key fundamentals that ensure growth potential is simple. These are:
- Current Population Growth
- Current Employment Growth
- Home-owner occupation and demand
Tick these 3 boxes and any area you buy in has the key triggers and foundations of experiencing property house price growth.
That’s what we look for in our locations before we list any property deal.
Only once were sure of the above criteria being ticked do we list them on our site and offer them to our clients.
4. Your Guarantee
Whether you are based overseas, in the UK but out of the area, or even if you live right next door, buying an investment property can seem risky if you are not a regular investor.
Like any investment, property carries risks, but with the right due diligence you can mitigate these risks and that’s the key to the guarantees we provide with our ready to go deals.
These are your 3 step guarantees:
- Each Property has been personally viewed & vetted by someone from Property Investments UK or our partner companies to ensure the condition, figures and tenant profile are correct.
- You only pay a reservation deposit when you are 100% sure on the deal, we never ask for deposits just to provide you with ‘information’ like some companies do. We are 100% transparant on the deals from day one and give you all the time and figures you need to make an educated decision. In addition many companies may charge a full sourcing fee of thousands of pounds on day one for reservation deposits, this is unnecessary and risky, that’s why we are different, to secure one of our properties when you are ready to proceed it’s only a small reservation fee of £500, much less than our competitors.
- Once you have offered on a property and the vendor has accepted, you have secured the property. It will be removed from sale, not offered anywhere else and no higher offers will be accepted, allowing you time to complete in confidence.
5. Your Benefits To Buying Our Deals
In addition to your guarantees by buying our ready to go deals you are enjoying the following benefits:
- Each property has been hand-picked and selected by me (Robert Jones) personally. So you are benefiting from my combined knowledge, contacts & experience of over 10+ years in the local North West property market. So you get the right location, right price & right property.
- These are hand-picked investments so naturally,each one is limited availability. These are individually sourced and selected based on our core elements above. High Yielding, Growth Areas, Quality Deals.
- We don’t do any sales tactics or use high-pressure call centres. If you are interested in a deal simply contact us and ask as many questions as you like and take as much time as you like to decide on a deal. We don’t follow you up with multiple phone calls and high-pressure sales, you are in control.
- All properties are Off-Market and Direct to Vendor.
- The majority of our properties are tenanted & cash flowing on day one
- We focus on established rental & re-sale areas and housing stock.
Sign Up to Our FREE Property Investment Training Course Today
If you want to invest in property but are not sure how then why not join our free online property training course?
In there we cover a range of different property strategies to help you get started on building a long term property portfolio or creating a cash flowing property business.
We also look at ways to increase your return of investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents.
Just click the image below to join our free training course.
Now I know you’ve very likely got some burning questions at the back of your mind and I want to be completely upfront from the start. So let’s answer them.
Can I View the Properties?
Viewings are available for buyers who have reserved a property and are proceeding with the purchase.
If the property is a New Build development viewings are available near the end of completion due to health & safety, but prior to that, you are certainly able to see the site location.
If the property is tenanted then it depends on the tenant profile if we can get internal access.
Professional buy to let properties are usually no problem, although the social housing HMO’s are difficult due to the nature of the tenant and the lease agreement.
However due to the high number of enquiries we receive for the properties we can’t arrange viewings for every potential buyer at the enquiry stage as this would disturb tenants unnecessarily.
So how does this work?
Once you have reserved a property and your solicitors start the conveyancing process you are more than welcome to view the property and if the property is anything other than described you can pull out of the purchase with no penalty, so you are 100% covered and there is no risk.
This protects you, the tenants and the seller.
However as we view all the properties on behalf of our clients, before they even go live on the site, and we carry out photo and video inspections many of our clients (especially overseas and out of area buyers) prefer these than a physical viewing as it’s often a more efficient use of time.
How Do I Reserve a Property?
Simply contact us using the enquiry form above with the property address you wish to reserve.
Then the Process is:
- When you are ready to progress with a property you can make a reservation payment of £500. We will then take the property off the market and the sales process can start with all parties happy it’s secure & proceeding.
- We will then send a memorandum of sale to both your solicitors and the sellers solicitors. This is a simple one page letter confirming the buyer, seller, property address, target completion date and purchase price. You can use your own solicitor for your purchase so you can be 100% confident of the process.
Are There Any Sourcing Fees?
Some of the properties we secure come with only a minimal reservation fee of £500 which secures the deal for you and we are paid on sale by the seller – like a traditional estate agent method. This is often the case with larger new build developments.
Other properties where the seller is a homeowner or a smaller landlord we receive no fee from them as the seller so we charge a set sourcing fee for buyers of £3,000.
This is fixed for all properties and is easily seen on our site so as a buyer you know your getting a fair and fixed price.
This sourcing fee is only payable once the property has exchanged.
How Long Does The Sales Process Take?
You can have the keys in your hand in just 28 days for most of the properties and many are already tenanted and earning so you have an income from day one of your purchase!
If you are buying cash or have your mortgage AIP (agreement in principle) ready, 28 days should be no problem, however if you need more time to purchase we can discuss this with the seller and negotiate it on your behalf at the offer stage so you can proceed in confidence knowing you have the time you need to complete.
Can you recommend letting agents or maintenance teams?
Of Course! We can introduce you to letting agents, maintenance teams and any other contacts that you need to successful build and manage you portfolio.
Some of our properties like the Social Housing HMO’s & Corporate Let’s come with full management in place!
These are the same teams and companies that look after our own personal properties and those of many of our clients.
For many of the properties we sell they will actually already come ready tenanted, recently refurbished and fully managed.
So you can proceed in confidence and know your property is being looked after from day one.
Where Do The Property Deals Come From?
Having been established in Manchester and the North West buying property deals ourselves and with clients since 2005 we have built up relationships with many contacts from estate agents, property sourcers, developers and solicitors, so we get introduced to many property deals often before they even come on the open market.
This network along with our own sourcing methods allows us to find and provide the very best exclusive direct to vendor property deals to our clients.
Is This Tenant Profile Right For Me?
It’s important you know the pro’s and con’s of the tenant profile of the property your looking at buying.
To help see which tenant profile is right for you, please check out these articles here….
If The Deals Are So Good Why Don’t You Buy Them All?
Simply put we don’t have the funds to buy every deal we come across and our focus is strongly on specific joint venture projects which are often developments and conversions.
All the deals we sell on our ready to go deals page are ready to purchase as individual deals, ranging from fully refurbished and ready tenanted buy to let’s, HMO’s & Corporate Let accomodation. Perfect if your looking to hit the ground running with your preferred strategy.