Could a new ethical property fund be the right way to end the risk of homelessness for thousands of vulnerable people and tackle unfair, unsustainable rents and the broken housing market in the Uk?
In an increasingly volatile housing market, Equfund has relaunched its Reap investment opportunity, with
Invest in Ethical, Affordable Housing for Social Impact
After a successful first round of investments, raising over £3,750,000 in 2015, Equfund’s Reap ethical property fund initiative has relaunched, allowing people to invest in property that provides affordable, decent rental homes for people in housing need.
The
relaunch sees Reap transition from primarily investing in and refurbishing
long-term empty homes, to acquiring properties that are ready to move in –
allowing a faster process in delivering good quality long-term housing for
those most in need.
A Fixed Monthly Income
With
a minimum investment of £15,000, investors will receive a fixed monthly income
(from the rental income) with a flat interest rate of 3% per annum without the
associated risks, responsibilities and inconveniences of being a landlord. 100%
of the original lump sum is returned to the investor after five years, and the
invested amount and their monthly income is unaffected by voids or (maintenance
costs) if the property requires maintenance.
Ethical Investors Wanted
As buy to let investing loses its appeal for many property investors, with returns falling in recent years, Equfund is targeting the rise of the
A Reliable Ethical Investment Income
Reap invests in property to provide affordable rental homes for people
in housing need. Every acquisition is rigorously assessed to ensure it can
provide a durable and reliable cash income stream for investors. The management
of the property is handled entirely by Equfund.
Be An Ethical Landlord Without the Risks
With a minimum investment of £15,000, investors will receive a fixed
monthly income (from the rental income) with a flat interest rate of 3% per
annum without the associated risks, responsibilities and inconveniences of
being a landlord. 100% of the original lump sum is returned to the
investor after five years, and the invested amount and their monthly income
is unaffected by voids or (maintenance costs) if the property requires
maintenance.
Ready to Move in
The first round of Reap raised over £3,750,000 when it first
launched in 2015, double the target amount. In this second round,
Reap has transitioned from primarily investing in and refurbishing
long-term empty homes to acquiring properties that are ready to move in. This
transition, which was brought about by the worsening housing crisis in the UK,
allows the company to act with greater speed in
providing housing for those most in need and to allocate more investors’ funds
against property.
The ethical alternative
Reap protects investors’ money by only borrowing 85%
of the property value and the loan is registered against property at HM Land
Registry much in the same way a mortgage is.
Transparency and No Fees
Reap is fully transparent. Unlike many other property schemes, there are no fees involved and Reap guarantees to secure the investment against UK property and does not rely on property price growth to generate an income for investors.
Each property has its open market value assessed by an independent Chartered Surveyor, and investors can arrange to visit a property prior to allocating their funds against it. For further security, and to limit exposure to any single property or locality, investors can request to have their money split and lodged against more than one property.
Let’s End Housing Discrimination
Reap actively rents to tenants in receipt of Local Housing Allowance or Universal Credit, with the belief that doing so is an important step in breaking the cycle of housing poverty caused by rampant discrimination of people in receipt of housing benefits. Reap goes as far as to assist LHA tenants with the paperwork required to claim
Andrew Mahon, Director at Equfund said:
A Stable, Ethical Income Stream
“With the government seeking to gain more control over the private rented sector, the buy-to-let market has become progressively complex over the last 12 months, and the next 12 months will see yet more considerable changes to the sector.
Investors no longer see much sense in putting their hard-earned money into a market that increasingly offers fewer rewards and more headaches and exposes them to great risk if they’re not fulfilling all of the new regulations.
With Reap we’re offering a viable alternative to this broken system that
not only tackles the growing housing crisis in the UK with a long-term
solution, but also provides a stable and predictable income for socially
responsible investors who still want to have a slice of the property market.
A Proven Track Record in Tackling the Housing Crisis
We’re proud of the work we’ve done. We have a proven track record over the last decade in addressing the housing crisis with ethical and sustainable solutions and the ethical property fund is an ideal example that works. This second round of Reap will turbocharge the all-important work we do of putting a roof over the heads of those who most need it.”
Since being founded in 2002, Equfund has found homes for thousands of people through investments of over £33 million. More Information visit Reap
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