Asylum seeker investments – we’re changing how we do it.
In the past we have offered asylum seeker investment to all our clients in the UK and abroad. It is a particular niche of investment and those that have been able to grasp the benefits of being involved in such a long term contractual agreement with government service providers can see that there is a stable income to be made from refugee investments and by investing in asylum houses.
These social investments are definitely a niche and they are not for everyone. We have fine tuned the requirements for acquiring these types of investments and work very closely with the government consultants on a weekly basis. In essence, this duty as a buying agent for investors has enabled us to get a closer look and gain an intrinsic knowledge of how we can maximise this opportunity in Greater Manchester and Lancashire.
Asylum seeker investments in Greater Manchester
Our primary source of acquiring and offering these asylum housing investment was to buy in the properties via Lancashire repossessions and repossessions in Manchester (primarily through asset brokers, direct marketing and auctioneers), renovating and refurbishing and then selling them on with the 5, 6 or 7 year rental contracts in place. This suited us and suited our investors as we could have clients in place by the end of the refurbishment and hand the keys over to the clients with a long term tenancy in place. However, we are gradually moving away from this model and will soon be offering the following service only:
- We source a property which is bought by the client, we project manage any refurbishments and furnishings and get it tenanted on a 5, 6 or 7 year contract – a £3,500 fee applies.
- If you have an empty property, we can get a 5 year no void contract on it for a £750 fee. Please click here to read about this.
We believe that this renewed model will provide a clearer and even more transparent process for clients that want to invest in asylum seeker properties. In effect, we are positioning ourselves as property finders and property sourcers (especially for asylum seeker accommodation investment).
How clients benefit when buying Asylum Seeker property investments?
We do not request upfront payment and will only ask for our entire fees once the project is complete* and the long term government contracts have been signed off. This means that we won’t be able to source any old junk, label it ‘asylum seeker investment’ and charge a sourcing fee. The £3,500 is a very modest amount for the level of input that will be required and we anticipate an increase of this fee once the model takes shape.
Price change of actual asylum property investments?
There is an added bonus here for the client. In the previous model, we would buy the repossessed properties ourselves for a certain amount, undertake the necessary work for a fixed amount and then sell on to the investor once the asylum seeker investment contract is in place. Our gross profits of this are a lot higher than the fee that we are looking at now. So by adopting this model, we are reducing our profits dramatically. However, the advantages gained in other aspects means that we are prepared to take the hit. In short, this model will loosen up our capital to be involved in multiple projects at any one time; reduce the tax implications when it comes to Capital Gains Tax and the demonstrate even more transparency of which our clients directly benefit.
Streamlining the purchase of Asylum Seeker investments
So there you have it. We hope you enjoyed this newsletter and agree that this transition to an even more transparent solution is to the benefit of our clients and will enable us to provide a more streamlined service when it comes to sourcing asylum seeker investments. Remember, we have built up years of experience in alternative property investments and this niche property investment opportunity is for clients who are prepared to tie themselves in for a minimum 6 years of rental income.
If you are interested in Aston Eaves sourcing a fully packaged asylum seeker investment, then please get in touch. Please note, that we will still be offering the old service of selling fully furnished complete armchair investments, but our emphasis is now on this new model. To see what we currently have for sale, please click on this link.
* We ask for 15% of the fee to be paid upon sourcing instruction which is a non-refundable deposit and the remainder of the fee to be held in escrow. Once we have completed the sourcing instruction, the remaining 85% is transferred to us from escrow. The client must pay any escrow charges.