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Telephone: 0203 455 0402

E-mail: enquiries@aspengreene.com

Web: www.aspengreene.com

US Social Housing Property Bond


Introduction Aspen Greene i s c u r r e n t l y w o r k i n g with

strategic

partners

to

take

advantage of the dislocation taking place in the US housing market. To date our partners we have already sold properties with a combined value in excess of $30m. We acquire distressed property, typically 2-4 unit multi dwelling and single family homes throughout the US. All properties are acquired direct from US Banks and Government Sponsored Entities (Fannie Mae, Freddie Mac etc) via Foreclosure sales by our experienced team of property negotiators. Each property is given a comprehensive refurbishment which includes, New Kitchens, Bathrooms, Windows, HVAC and Hardwood Flooring. We either sell these properties, fully refurbished and pre- tenanted, direct to buy to let investors at a minimum net yield of 20% - 22% or we keep them to benefit from the long term rental income.


Social Housing Bond & Investment Strategy The Social Housing Bond launched in early 2012 has recently been SIPP (Self Invested Pension Plan) approved. This means that investors who hold a SIPP can now boost their Pension benefit by up to 19.95% per annum. At a time when most pensions are struggling to make 2% or 3% it is good to know that not only can you achieve a return of up to 19.95%, you can do so whilst also helping to re-house low income families under the Housing Choice Voucher Program, formerly known as Section 8. This allows the investor to achieve high rental yields that are paid and underwritten directly by the U.S. Government. Table 1 below shows the Housing & Urban Development (HUD) departments agreed rent payable in Chicago for 2013: Table 1

One-Bedroom

$815

Two-Bedroom

$966

Three-Bedroom

$1,231

Four-Bedroom

$1,436

Table 2 Bond Investment

$80,000

1st Dec ‘12

31st May ‘13

Property Type

3 Apts 8 Beds

Total Bond Interest Payable

$47,869.08*

$40,058.43*

Rental Income as per FMR

$41,136

Redemption Payment @ 100%

$80,000

$80,000

Cap Rate

25%

Total Repaid to Bond Holder

$127,869.08*

$120,058.43*

Sale Proceeds

$164,544

Average Annual Rate

19.95%

16.69%

* Figures dependant on date of investment. Please ask your agent for figures based on your own circumstances.


What is the Housing Choice Voucher Program? A typical acquisition and refurbishment cost for

A family that is issued a housing voucher

a three apartment unit would be approximately

responsible for finding a suitable housing unit of the

$80,000. The rental income generated

by

this property would be $41,136. This would provide an un-leveraged yield of 51.4% or an

is

family’s choice where the owner agrees to rent under the program. Rental units must meet minimum standards of health and safety, as determined by the PHA.

un-leveraged profit of $84,544 if we sold at a

A housing subsidy is paid to the landlord directly

cap rate of 25%.

by the PHA on behalf of the participating family.

The sale of just one of these 3 apartment properties generates enough cash to cover all the Bond interest payments and the final redemption payment. (Based on an investment of $80,000 showing figures based on investment at the beginning and end of investment period, see table 2). The Housing Choice Voucher Program is the U.S. Federal Governments major program for assisting low-income families, the elderly and the disabled to afford decent, safe and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments. The participant is free to

choose

any

property

that meets the requirements of the program and is not limited to

units

located

in

subsidised

housing projects. Housing choice vouchers are administered locally by Public Housing Agencies (PHAs). The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program.

The family then pays

the

difference

between

the actual rent charged by the landlord and the amount subsidised by the program. Under certain circumstances if authorised by the PHA,

a

family

may use its voucher to purchase a modest home.


Why Should I Invest Now? • Limited number of bonds available. take advantage of the exceptional • To without hassles of direct ownership.

• Flexibility.

More bonds can be bought for just US$8,000 each.

returns

• The

ultimate ‘armchair investment’. Purchase your bonds and that’s it. Sit back. Relax and wait for the returns to arrive.

• • Short

Guaranteed returns compounded every 6 months.

to medium term. Returns & redemption payments are concluded after 3 years.

• A once in a lifetime opportunity to benefit from

low property prices and high rents in the world’s largest economy.

• Asset backed Investment. • All bond holders have a

1st lien charge over entire property portfolio until all bond payments have been disbursed.

• 75% rule. The amount of Bondholder funds under management cannot exceed 75% of the value of the property portfolio.

above average • Assured 19.95% per annum.

returns of 16.50% to

• Secure exit strategy. • Fully SIPP/SSAS compliant structure. • No need to register or pay U.S. taxes. • No need to open a U.S. LLC or bank account. alternative investment managed by one of • Secure the largest title insurance companies in the U.S. management, trading and development • Property team in place with over 40 years’ experience.

• No worries about maintenance or refurbishment issues.

• No void periods. • Low entry level of £10,000 currency risk to investors. Funds can • No invested in Sterling, US Dollars, Euros & Yen.

be

• Interest

Redemption payments paid on original currency invested.

Minimum Investment - Fixed Annual Returns £10,000 @ 14% Date 1st Dec ‘12 31st May ‘13

Yr1 14% £2,194 £1,449

Yr2 £1,767 £1,659

Yr3 £2,203 £1,899

Redemption @ 100% £10,000

Total £15,984 £15,007

Annual Equivalent 19.95% 16.69%

* Figures dependant on date of investment. Please ask your agent for figures based on your own circumstances.


Aspen Greene Ltd 29th Floor, 1 Canada Square Canary Wharf. London E14 5DY Tel: + (44) 207 455 0402 Web: www.aspengreene.com

Registered Address: 29th Floor, 1 Canada Square, London. E14 5DY Company Number: 8388077


US 14% Property Bond Brochure