Refugee and Asylum Seeker investment properties
We are now working with a local developer to offer a unique route to high yielding investments for our UK and international client base: Social housing in key demand areas with a particular focus on refugee and asylum seeker housing.
In property investment or as a landlord, you don’t always get a chance to see your work as having a positive impact on wider issues and for the most part, landlords and investors are often seen with contempt and dislike from the general public. However, we’re pleased to say that we’ve been working on something which we believe can make you feel good about your investments and show that you would be doing a bit of good and ethical whilst making solid and tangible investment returns at the same time.
There has been an influx of refugees and asylum seekers in the last 5 years and housing associations are being stretched on where to place and house these unfortunate individuals and families in the UK. Whether you like it or not, the UK has been attracting a disproportionate number of displaced persons from within Europe and beyond since the economic crisis in 2007/2008 and things have not improved since. Some economists expect things to get worse, before they get better.
Asylum seeker investment properties – where do we focus?
We have recently been working with a third party group who works directly with the Home Office and Immigration services to house refugees and asylum seekers in key parts of the UK, with the North West being particularly focused on. Key towns and cities such as Preston, Bury, Bolton, Salford, Liverpool and St.Helens are areas that the government has requested homes to house displaced families with the government offering rental guarantees for anywhere between 3 to 7 years at the following net rates:
- 1 Bedrooms £350 per month
- 2 Bedrooms £400 per month
- 3 Bedrooms £500 per month
- 4 Bedrooms £600 per month
The above are for houses or apartments, but what is key is the property must be within a particular street or postcode that the council is prepared to pay out on.
What do we have right now? Do we have any properties to offer investors?
We currently have (update: as of the 21st of June 2012)
17 14 houses – excellent for rental investors in the North with 3, 5 and 7 year leases directly with the government. These houses are 2 and 3 bed homes, priced from £65,000 upwards and offering net rental yields of approximately 9% plus.
Long term let houses – an investors dream…
This type of refugee housing investment and asylum seeker investment is perfect for investors who understand that cashflow is crucial for the next decade. At 9% over five years, payback is at 45% guaranteed, meaning this is more suited to professional rental investors as opposed to speculators. These simple terraced properties have always been well received by our clients, so we urge you to act with haste if you are interested.
Can I get a mortgage for any of the houses?
Absolutely. This is down to you to arrange and as long as you are mortgage-worthy, then we will take your offer seriously. We prefer non-mortgage purchases due to the speed of completion, but we are generally fine with either. We can introduce you to a mortgage broker if required.
Can I have an input and choose the tenant?
Generally speaking, no. You are, in effect, leasing the house to the government who is acting as your tenant. They will house any asylum seekers or refugees as per their conditions. Please note, that as part of the agreement and upon expiration of the lease, they must repair and hand the house back to you in the same condition as when the lease started.
Interested to learn more? If you are interested to read more about this particular investment, then please call us on +44 (0)20 3603 8903 or fill in the enquiry form on our website: www.astoneaves.com.