t Ethical Property Fund Re-opens to Stop Homeless Crisis - Ethical Hedonist
LOADING

Ethical Property Fund Re-opens to Stop Homeless Crisis

April 14, 2019 in Ethical Finance
0
 
0
0
3947
Rooftops at sunrise by Tom Thain
Rooftops at sunrise by Tom Thain

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 appeal for the ethical and social impact investor seeking the opportunity invest in property to help provide homes for people in need, addressing the nationwide housing crisis.

A man walks down steps in a seaside town. Picture by Tom Kulczycki
A man walks down steps in a seaside town. Picture by Tom Kulczycki

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.

Equfund Ethically Funded House for Rent
Equfund Ethically Funded House for Rent

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 ethical property fund investor who would be keen to lend their money to provide life-changing, safe, affordable housing for people at risk of homelessness.

An aerial view of houses. Picture by Paul Hanaoka
An aerial view of houses. Picture by Paul Hanaoka

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.

Kitchen interior of an Equfund Ethical Investment Property
Kitchen interior of an Equfund Ethical Investment Property

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.

Man with a ladder
A man with a ladder

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.

Bright Green Moped parked outside a flat. Picture by Alex
Bright Green Moped parked outside a flat. Picture by Alex

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 their correct allowances and will help to submit paperwork to the local council on their behalf.

Andrew Mahon, Director at Equfund said:

Rooftops at sunset. Picture by Clara Gonnord
Rooftops at sunset. Picture by Clara Gonnord

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.

Colourful painted houses by Olivier Chatel
Colourful painted houses by Olivier Chatel

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

Ethical Insurance News to Match Your Social and Environmental Ideals

Now read about how you can switch to green and ethical insurance and help support our leading nature, animal and conservation charities simply you choosing ethical insurance for every aspect of your personal and business life – Ethical Insurance Feature

0
 
0
0
3947

about the author

Alison Jane Reid

Alison Jane Reid - Journalist, Editor & Emerald Princess of Slow, Sustainable Luxury Living - 18 year track record interviewing real icons for: The Times, The Lady, You, The Mirror and Country Life. Now leading her alluring fairtrade, emerald revolution - Don’t Miss Out - Have you joined The Ethical Hedonist set?



Leave a Reply

Your email address will not be published. Required fields are marked *