Would you like to earn 12% pa on your savings paid each month?
At Avonnova we have been successfully investing in property for number of years and over that time have purchased everything from two bedroom family lets to six bedroom student blocks.
We believe in doing things properly and have always engaged the University housing department, the Environmental Health Offices as well as the Fire Officers to ensure what we do is both ethical and safe. This is a solid and professional operation that has consistently delivered results month after month and of which we’re proud.
Our credentials
- We have 3 years experience of establishing profitable Buy to Let and Houses in Multiple Occupation (class B) properties in difficult market conditions.
- We are members of the Residential Landlords Association, National Landlords Association, National HMO Network, Decent and Safe Houses scheme
- We have featured on the BBC (Broadcast and online) and Tepilo (Sarah Beeny’s property website) where we have commentated on Housing issues.
- We work closely with the Universities, Environmental Health and the Fire Office to ensure we provide safe and comfortable accommodation.
- We work closely with Brokers and solicitors and a number of mentors with tens of years experience in this sector.
The Opportunity.
When we purchase a property there is still the upfront requirement of the deposit and the additional costs involved to turn that house into a cash flowing proposition. For example, we install fire doors, emergency lighting and fire alarm systems and yet many landlords don’t consider this a necessary expense and are willing to put both the asset and the lives of their clients at risk.
What we do is make these upfront costs available to further investors and we pay a monthly amount of 1% of the loan amount in interest payments to that investor every month which is serviced by the positive cash flow that the property produces.
For example if you were to invest £10k, we would pay you £100 per month (£1,200 per year). This is equivalent to 12% pa and contrasts with the 2 or 3% you would currently achieve in the high street bank. Additionally as we don’t tax at source you are free to maximise your tax position to suit your individual circumstances.
Security
We understand that you need to know your capital is safe. For that reason we have the following controls in place.
- You have the knowledge that we have already purchased the property with our funds (and deposit). Hence the investment has been ‘stress tested’ by the lender to ensure if meets their lending criteria and that the proposition is fundamentally sound.
- We will register a Charge in the name of the property meaning that no solicitor can undertake the sale of that property without the principle amount of your investment being repaid in full. This will show in any search undertaken by a solicitor.
- Our solicitors will draw up a debt agreement outlining the structure of the loan obligation between both parties which will be signed and a copy held by all named individuals.
We would require the loan for an initial 12 months with a further rolling 6 month notice period (or extension) and we pay interest in the monthly anniversary of the day when funds were drawn down.
Conclusion
This is an investment opportunity that we have been making available to friends, family and other investors since early 2010 and as the number of properties we have in our portfolio increases, it is now time to widen the availability of the offer.
This is a short to medium term investment with an expected duration of two years and should be viewed as such. We have set out to create a product that balances risk and reward without compromising either in a way that is both easy to enter into and exit of to you as an investor.
Of course it should be understood that as with any venture there is risk attached we have set out to absorb the risk internally at the initial stages with our own capital and pass on the opportunity but fundamentally this is an investment and for that reason it has risk associated.
These are exciting times for us as we actively grow our portfolio in what is a window of opportunity that we won’t see again for a number of years and we need others to share our success to create a true win-win environment.
| Key Facts | |
| Minimum Investment Amount | £10,000 |
| Minimum Investment Term | 12 months |
| Interest paid to investor | 1% on the day of the month initial funds drawn down (available to Avonnova) |
| Notice to roll on the investment required (year 1) | Month 7 |
| Notice to roll in the investment thereafter | Every 6 months from start date of investment starting after 12 months |
| Maximum Investment | Unlimited overall, but ring-fenced to a maximum exposure of £60k per agreement. |
| Process |
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