A New Exciting Investment Opportunity for You

Last updated: 2.55pm, Monday 8th February 2021 by Gordon Campbell

We offer a unique opportunity for you in 2021 for your income and wealth to jump several steps

Every year we start off hoping it’s better than the last.

In 2021 that’s more relevant than ever.

We offer a unique opportunity for you in 2021 for your income and wealth to jump several steps- and we can even help you refinance it.

Beginner or experienced, this is for everyone.

What Is the Opportunity?

Social Housing

Please note:

This is not The Guaranteed Scheme that only operates only in the Glasgow City boundary.

This is a different opportunity. An as equally great.

We have been trialling what we are calling in Alliance the Social Housing Investment Opportunity (SHIO) since middle of 2020.

There was a lot that had to be done to ensure we had the right location, organisations, people, processes and procedures in place to make it work 100% successfully.

That was critical. We like everything to be very accurate for you..

No surprises. No doubts. No hassles

It is a strategy that takes lots of planning, coordination and organising for all parties involved to all be committed and focused on the plan.

The benefits detailed in the document will confirm:

Properties we sell are all off market and exclusive to Alliance Property Group and you.
The majority will be £25,000 to £40,000, so below LBTT (stamp duty) threshold so nothing to pay.
All the properties, regardless of value, can be refinanced individually or collectively.
Always the right properties in the right areas with the right demand.
All are in areas of strong demand, amenities, capital growth, rental and sales demand
Social properties are the same as private properties. Just a different tenant.
The rent is paid direct from the council to the letting agent so a secure rental payment
Rents are very similar or better than the private rented sector
This strategy and our One Stop Solution service means less stress and hassle for you.

It’s a strategy for us all to give back and Make a Difference.

Why Social Housing?

It is a strategy we have a lot of experience and success in, not only personally but also selling successfully to international investors.

So, we have been working in the background for a few months to get the right location, people and organisations around us.

And to thoroughly test, trial and implement this opportunity.

We have now done that.

What is Social Housing?

Social housing in Scotland is housing owned and managed by public authorities (mainly councils) and housing associations (registered social landlords or RSLs).

These organisations are not able to meet all the number of social housing required, so the Private Rented Sector (PRS) i.e. Private investors like you to help with the shortfall required.

History of Social Housing

It is over a 100 years since the first UK government subsidies for the building of council houses in the UK, with the, promise of “homes for heroes” to the men returning from the First World War.

At its height, in the mid-70s, 54 per cent of Scotland’s homes were council-owned (68 per cent in Glasgow), compared with just a third in England.

But then about 40 years ago, the UK Prime Minister Margaret Thatcher crated the Right to Buy legislation and the conviction that home-ownership was the goal of anyone with ambition.

One and a half million council homes have been sold across the UK under Right to Buy.

With one built for every three sold, Scotland lost half a million council house properties.

There are now fewer than 5 million social houses left in Britain – down from 6.5 million when Right to Buy was introduced in 1980.

What About Social Housing in Scotland?

The Scottish Government had set a target of 50,000 new affordable homes, 35,000 of them for social rent, before the end of 2022.

Although there is good progress, the target will not be met and still leaves a constant shortfall of social housing required.

That is believed to be circa 31,000 in Scotland of which 18,000 of that is in Glasgow and surrounding areas.

There was never enough housing in the UK of all types, especially social housing.

And there never will be.

That is why social housing requirements today, continue to be required and supported by the Private Rented Sector, and investors like you.

Hence the opportunity we are presenting.

Who Needs Social Housing?

It is wide and varied. It can be someone who has/is

Long term ill health
Not able to work
Left hospital or care
Violent or abusive relationship
Action by lender and lost their home

Here is Questions and Answer and the Process to explain and clarify the detail

Questions and Answers

Where is the location?

The local authority area is Inverclyde, e.g. Gourock, Greenock and Port Glasgow

Why Inverclyde?

It a popular area to live in as has excellent amenities of transport (main road and rail networks to Glasgow 25 minutes away), colleges, schools, leisure and retail.
It is an area that will be strong continued growth and demand for properties, has a wide and diverse local economy of pharmaceutical, finance, specialist engineering and a major shipping terminal and port.
Continual regeneration of the area in housing, infrastructure and leisure to meet demand of the rise in population.

Are you offering the Social Housing Investment Opportunity in any other area apart from Inverclyde?

Not at the moment
If and when we do, you will know.

What About the Properties?

We have successfully sold, refurbished and rented about 1000 properties since 2007 and in Inverclyde since Q1 2020 we have sold about 100;

All the properties we have sold have been:

Off Market
Direct to vendor
Strong discounts of between 20% to 50% below market value
Yields of 13% to 22%
In areas of demand for either private rented market or social
All properties of any value we sell can be refinanced individually or refinanced.

Will I still be able to refinance a property with a social tenant?

100%
The property is privately owned by you, it is effectively a Buy to Let investment, rented on the open market to either a private tenant for social housing.

Can I get buildings and contents insurance with a social housing tenant renting?

No problem.
The estimated insurance cost is in the financials of the deal proposal you get.

Is There Specific Properties or Areas for Social Housing?

No. There is no specific areas for property types or tenants of just for social housing. Very integrated.
Private rented property is the same as Social Housing
Any property we sell is a freehold property owned by you.
All properties we sell, can be rented on the Private Rented Sector or for social housing tenants.
Housing in Inverclyde is very integrated.

Are the properties for Social Housing of a lower quality?

Not at all. Housing standards in Scotland are and have to be very high
The whole housing process in Scotland, Glasgow and surrounding areas like Inverclyde is very robust and regulated in a positive way.
It is different, better and simpler than in England as highlighted in this blog What is The Difference Between the Scottish and English Property Market

If rented on the SHIO (Social Housing Investment Opportunity), will it affect the valuation, price or eventual sale?

Properties we sell are always based on bricks and mortar.
Tenant type is not a consideration from the lenders or surveyors.

How is the Rent Paid?

The rent is paid by the council direct to the letting agent every month, so very secure.

What is the length of the arrangement/ lease?

Social Housing is a very long term requirement for the council so is very safe and secure so is open ended.
You are in charge. You can have the property rented for as long or as little as you want.
You can give termination notice at any time to take the property back if you are selling the property.

Do long do the tenants stay in a property?

They do. And usually for a long time.
The reason is they will have a support network, family, friends, local schooling or other excellent facilities nearby so they want to make it their home for many years.

Can I eventually resell a property with a tenant in the property?

Yes
We have sold many properties with a tenant already in situ.

Are social housing tenants problematic?

They are very grateful for what help and support they are being given.
They are offered good quality properties from us and the letting agent manages the tenants well.

If I have a property already in Inverclyde can I switch it to the SHIO?

If you have bought the property from Alliance, there is a probability that the property is already on it
Any other properties considered for the SCHIO will need to be vacant and also verified if suitable.

Is the rent value paid for the social housing in Inverclyde comparable to open market prices?

For the properties we sell it is.
There is a maximum rent level that is paid by the council depending on the number of bedrooms.
The rent we put on the deal proposal is correct for the property so no surprises

Is there rent increases for social housing tenants?

Yes
The council will review the rent rates paid based on the cost of living or the market level for rent compared to the private market. They are always kept in line to the private rented sector rents.
That tends to happen every two years.
Example- last year the 2 bed rate in Inverclyde was £420 a month. It is £450 a month for this year.

Do rental levels ever get reduced?

No
They never have or do.

What about any potential repairs?

The refurbishments on the properties are done to a good standard and minimise potential repairs.
From experience personally and what we have sold to investors through Alliance, any repairs and costs tend to be very few and no big costs.
Social tenants are very grateful for what has been given to them and the help they receive so most are less problematic.

What About The Letting Agent?

The letting agent we are partnering we have been working closely with since last year.
We have been working with a few but for social housing tenants, they are the right agent 100%
They are absolutely the right agent for the social housing tenants because:
- They have a wealth of experiencing with social housing tenants
- They have the direct contacts in the council for payments and for referrals.
- They are well respected in the council and the local community
- There is no BS with them
- They get the job done like we do.
- Less hassle and stress for you.

What About the Property Refurbishment?

Every property we sell is personally viewed, a huge amount of due diligence done on it before it is sent to you, as detailed in this blog How Does Alliance Property Group Get Off Market Properties? (click link to open)
Every property we send will have a detailed Deal Proposal document, photographs, floor plan, walk round video, comparable sale report and a detailed refurbishment quote.

That guarantees you that there is no surprises, costs are very accurate and you are able to buy in complete confidence.
Refurbishments are all cosmetic, simple and quick. Never any need to do overly extensive and expensive refurbs when they are not required.
The refurbishments are always done to a good standard and are fully compliant, that will enhance the value of the property and more than meet the requirement for quality properties that tenants require.

We do not reduce standards on any refurbs regardless of the tenant.
Our refurbishments on average take between 1 and 2 weeks maximum.
Our refurbishment teams are all well tried and tested who we have worked with for a long time and are as passionate, caring and dedicated as we are.

What is the Process?

The Deal Proposals/Property Deals

We will be sending out the deal proposal documents as before.
For the Social Housing Investment Opportunity (SHIO) properties, it will be clearly stated on the cover email and the deal proposal document.
The details will be very accurate.
No surprises
All costs will be listed, confirmed, accurate and detailed.

Solicitor:

The solicitor process is the same as any property with us.
Average time to buy is 4 weeks.
The solicitor and us will look after you at every stage.
This is all detailed on The Buying and Solicitor Process document (clink link to open)

Buying Process

Once a property is secured by you, we:

Send you a Sourcing Agreement, you sign and return.
A deposit of £1,000 is paid towards the sourcing fee.
The solicitor and we liaise closely with you during the buying process so no delays, confusions and problems.
Before the sale completion we help you with:
- Landlord Registration
- Buildings Insurance
- Council Tax Exemption
- Introduction to Letting Agent

Property Refurbishment

On completion of the purchase we arrange to collect the keys
We will confirm a start date for the refurb very quickly
A deposit is paid to the refurb team and the work will start within a few days
During the refurb we keep you up to date with progress and pictures. We project manage it.
On completion, we meet the refurb team and letting agent go through the property in detail so nothing is missed and any outstanding items are dealt with immediately.
The leys are then handed over to the letting agent.

The Letting Agent

Throughout the whole process from the start we are liaising closely with all of our Partnering Team.
The letting agent is aware of the property, the timescales and when it is anticipated they will get the keys.
That means they will have a social tenant ready to either view the property immediately or move into the property immediately.
The letting agent will already have been communicating with you from the point we introduce you to them so there is a smooth process.

Summary

This is a hugely exciting investment opportunity that we have been working on for a while to get it absolutely right for you.

There is a lot of detailed information and Q+As above, but the benefits are:

Properties we sell are all off market and exclusive to Alliance Property Group and you.
Always the right properties in the right areas with the right demand.
All are in areas of strong demand, amenities, capital growth, rental and sales demand
Social properties are the same as private properties. Just a different tenant.
The rent is paid direct from the council to the letting agent so a secure rental payment
All the properties, regardless of value, can be refinanced individually or collectively.
Rents are very similar or better than the private rented sector
This strategy and our One Stop Solution service means less stress and hassle for you.

It’s a strategy for us all to give back and Make a Difference.

This strategy will help your wealth, income and legacy jump several steps.

And remember……..

We hold your hand at every stage of the process. We are always here for you.

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