Attractive investment opportunities in Birmingham property
Businesses need capital and investors need returns, but the banks are making it difficult for us all. Prohibitive rates of 12% – 14% for capital, and poor returns of 1% – 2% on deposits are unattractive to businesses and investors alike.
However, such a wide gap between what the banks charge us and the amount they pay you the investor, means that we are able to create an investment opportunity that is an attractive option for both parties. If you cut out the banks and invest directly in a Loan Bond Option with The Student Letting Company, we raise the capital we require at a significantly lower rate than the banks would charge, and you receive a guaranteed 7.79% p.a. return over 1, 2, or 3 years.
How do our property investments work?
Loan Bond Options start from £20,000, which enables modest investors to achieve rates of return normally only available to large corporate investors. The bonds are available over 1, 2, or 3 year terms, with a guaranteed interest return of 7.79% interest being paid on a 1/2 yearly basis. The 3 year option also has an end of term bonus of 5%, making an annual return of 9.45%.
All loan bond amounts are 100% guaranteed by the company with charges over freehold properties in our portfolio, and are also backed by directors’ personal guarantees. The fund is secured by £400,000 of unencumbered assets and we undertake never to issue loan bond options in excess of 60% of this security at any one time. This provides our investors with the comfort of knowing that their investment is always secure.
How can we pay you more than the banks?
Property prices are currently at a relatively low level and Birmingham’s student population continues to grow significantly year on year. With Loan Bond Option funds in place, we are in a very strong position to take advantage of this situation as cash buyers. We have been developing properties as student lets for investors over the last ten years and so are experienced in creating houses that are very appealing to students and their parents (who act as guarantors) alike. This enables us to achieve some of the highest occupancy rates in the market, making our development projects highly sought after by our landlord investors.
Put simply, the opportunities in the student letting market are set to grow, the business has a track record of success, and the Loan Bond Option means it will cost us less to raise capital than at present, even when paying our investors 7.79% p.a.
Who is the Loan Bond Option suitable for?
Our Loan Bond Option is ideally suited to investors who are looking to benefit from the excellent returns we are currently achieving in the student letting market, but who do not wish to become full-time landlords, or to investors who are already landlords but do not wish to expand their own property portfolio at this time. Our Loan Bond Option is also appealing to investors who are looking to secure an excellent return on their money over a short period of time while they wait to see what happens during the current financial downturn.
Find out more
As mentioned above, availability of our Loan Bond Options is limited, so if you think that this investment may be of interest to you, please do not hesitate in calling Don MacPherson on 0121 456 5156 or send an email to don@studentlettingco.co.uk
