Source Investments

UK capital is already moving to Dubai, Portugal and Singapore. Now the Treasury is floating a tax on unrealised gains for those leaving the UK. For property investors, that’s not a shock, it’s a signal. When a government starts taxing exits, it’s admitting it’s lost the confidence of the people funding it. You can’t build homes without investors. And you can’t tax them once they’ve gone.

🌟 Reflecting on a fantastic business trip to Mumbai with @ChrisTremlett33! 🛫 We had a great time connecting with new investors and catching up with existing clients. Mumbai's has an energy about it which is pretty special. We will look forward to returning to India again in a couple of months 🇮🇳 #BusinessTrip #MumbaiVibes #propertyinvestment

The news of WeWork facing bankruptcy is a stark reminder for those trying to operate residential rent-to-rent schemes. Ultimately, both models involve creating long-term liabilities and short-term assets. From a cash flow perspective, this is a red flag. WeWorks takes out long-term leases on office buildings and tries to sublet those buildings to multiple individuals and businesses for a profit. The rent-to-rent model is no different. Both rely on subletting at high occupancy rates and are highly vulnerable to economic downturns. #wework #propertyinvestment #rent2rent

🧵Why Property Investors Need to Know About Energy Efficiency This is becoming a non-negotiable when it comes to looking at new investment opportunities. Here are the key areas: 1️⃣ 💹 Preferential Mortgage Rates: Lenders are offering attractive rates for properties with higher Energy Performance Certificate (EPC) ratings, typically A-C. Investing in a higher EPC-rated property provides greater access to mortgage lenders and better rates, enhancing your financial position. 2️⃣ 💼 Future Legislation: Although the deadline for rental properties to achieve an EPC rating of at least C by 2028 has been revised, energy efficiency remains a priority on the political agenda. Stay prepared for future legislation changes, as energy-efficient buildings will continue to play a prominent role in the pursuit of net-zero goals. 3️⃣ 💡 Energy Costs: We're witnessing an increasing focus on energy consumption from tenants, especially with rising living costs. Higher EPC-rated properties translate to lower energy bills for tenants, making them more attractive. By investing in energy-efficient properties, you'll not only save your tenants money but also secure a competitive edge in the rental market. 4️⃣ 🌿 Shift Towards Sustainability: Tenants today prioritise environmentally conscious living. Properties with higher EPC ratings offer modern amenities such as newer boilers, double-glazed windows, and require less maintenance. By aligning with sustainable practices, you'll attract long-term tenants and reduce the risk of vacancies. #epc #energyefficiency #propertyinvestment

⚠️Does anyone have any experience in how Assisted Living Investment Schemes work? These types of investments are put on my desk on a weekly basis. However, no one seems to be able answer any of my questions around how they actually work. 🤔 These are the typical offerings. - Assisted living accommodation investment. - Cash investment between £25,000 - £200,000. - 8.5% - 20% NET guaranteed returns. - Government backed. - 5 - 25-year FRI lease, adjusted in-line with RPI. - Exit ‘typically to a fund’ in the future. 💰 £m's of hard-earned money from retail investors are being put into these. It’s certainly a very compelling product….'high net returns, guaranteed by the government, ethical and completely hands off’. However, having had multiple calls with the investment agencies selling the investments, I still have a number of questions. 1. 🏚 Despite many of them being sold as a bricks and mortar investment, many are clearly not asset backed. Or if they are, the price being paid is at a substantial premium to the underlying value of the property. Everything seems to hinge on the strength of the lease. No one so far is able to show me the agreement between the government and the Housing Association. Information on the government websites show LHA rates but they don’t match the level of returns being offered. Therefore, how are the returns actually being delivered? 2. 💵What are the motives here and who is really benefiting? The promise by companies/developers selling the investments is ‘pension funds buy these all the time’. Then why don’t they just deal with the pension funds at the outset. Why the need for retail investors? 3. 💹If it’s not asset backed, the lease is diminishing in length (with the promise of being easily renewed) and your only way to sell and realise back your original investment is in a secondary investor market. Surely investors need to factor that it’s likely they may not get back their principle investment. Therefore, investors are not seeing any real returns until the principle investment is paid back. In most of these offerings, this is 10+ years from when the initial investment is made. 4. 📃What happens if the housing association goes bust? I assume the LHA will instruct another operator. However, surely the priority will be protecting the supported living tenants, not performing on these leases in the event the original housing association isn't in the picture anymore. What contractual obligation would they have to keep paying out? 5. ⛔I'm not sure how non FCA authorised investment agents are actually able to sell these to retail investors? If anyone has any experience from a legal, investment or housing association point of view I would love to know more. #assistedliving #supportedliving #propertyinvestment

Huge problem in the industry and regulation in this space cant come soon enough. Hopefully enough light on this can be shone by journalists and people like @shafrasul