Investing in a Commercial to Social Housing Investment

Commercial to Social Housing Investment refers to investing in funds which then finance the conversion of commercial spaces into social housing. These properties offer affordable rental accommodation to lower-income individuals and families. We thoroughly check for the best properties which have higher capital appreciation potential and which get better government subsidies. 

 

You’ll pay a minimum of £10,000 into our fund for at least 1 year and earn an interest income of 8%-12%, as well as getting back all of your initial investment capital once the investment period is over. 

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How does Commercial to Social Housing Investment work?

Commercial to Social Housing Investment involves converting commercial properties such as offices, retail spaces, or warehouses into affordable residential units. 

Government schemes support these developments which aim to fulfil the high demand of affordable housing in the UK for lower-income individuals or families. 

These properties are subjected to specific government regulations and incentives that aim to increase affordable housing stock. Government subsidies, tax incentives, and long-term rental agreements with government-backed agencies influence the return on investment.

Our process of identifying commercial properties

Pluxa Property uses data analytics and market research to identify commercial properties in prime locations and areas where there is a higher demand for affordable housing.

We use financial tools to analyze each property’s profit potential. This helps us understand possible subsidies and rental income to determine if the investment is worthwhile.

 

What are the benefits of investing in Commercial to Social Housing solutions?

Stable earning potential 

Social Housing properties are often backed by government agencies, schemes, and non-profit organisations, providing investors with a reliable and consistent rental income flow. Due to the shortage of social housing in the UK, the risk of vacancies is also low. As an additional benefit, you won’t need to spend money advertising these properties in order to source tenants, or hire experts to manage them. 

Low price volatility 

Social housing property values are less volatile as they come from long-term agreements with local authorities or housing associations, with predictable rent increases and a steady rental income.  These properties aren’t affected by market demands and have minimum price fluctuations. Even during an economically challenging time, the demand for social housing will continue to grow. 

Be socially responsible 

Investing in social housing solutions is an excellent way to contribute to society by helping to fulfil the high demand of rental accommodation for lower-income individuals and families in the UK. By converting underutilised commercial areas into social housing, you can build better communities, improve living conditions for lower-income groups, and contribute to local economic growth. 

Get advantage of government initiatives. 

The government often offers incentives such as tax allowances, grants, and low-interest loans to encourage limited companies to invest in social housing projects. This can reduce overall investment costs and increase profitability.  Government support or subsidies also provide investors with financial security for their investments as well as reduced market risk and increased returns. 

Diversified portfolio 

Social housing initiatives offer investors a diversified investment portfolio beyond that of traditional real estate, or stock and share market investments. This approach is gaining popularity in the UK due to the rising demand for affordable housing, and investors can be sure of a stable rental income flow during the investment period.

Maintenance and Property Management

Social housing investments are backed by professional property funds. Fund managers or specialized agencies handle all property management and maintenance tasks. This means investors don’t have to deal with the day-to-day responsibilities of property ownership.

Social housing investments come with professional property management services as Equity Commercial Property Fund Investments back them. Fund managers or agencies such as Pluxa Property also take on the burden and hassle of managing and maintaining these properties for you. 

 

To learn more, book your consultation today.

Why choose Pluxa Property for your Commercial Social Housing Investment

Use our experience and expertise to invest in social housing initiatives and earn higher returns at lower market risk! Our commercial investment fund pools capital from multiple investors and invests it into several commercial properties to convert them into social housing.

Our experts handle the entire process including: property management, long-term tenant sourcing, and any refurbishment of the properties.

FAQs

What is the main difference between Commercial to Social Housing and Commercial to ApartHotel investments?

The main difference between Commercial to Social Housing and Commercial to ApartHotel investments lies in their expected returns, cash flow, risk levels, and the type of tenancy. With social housing, the expected ROI and monthly cash flow are lower, but as they are fixed by the government scheme, they are less risky. Social housing also offers long-term tenancy, while ApartHotels use properties for short-term rentals. The expected ROI and monthly cash flow for ApartHotels is higher but isn’t fixed, so they are more risky. 

Anyone who owns a limited company in the UK can invest in Commercial to Social Housing projects. These are commercial agreements between the parties, so there are no specific restrictions on who can invest.

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