HOP (Home Owning Partnership) is a new way to invest for hassle-free, long-term inflation linked-income of around 4.5% net of costs.
With HOP you can invest in residential property alongside a buyer, who will occupy the property on a long-term HOP lease; sharing capital growth and downside risk.
HOP increases your net yield; there are no letting fees, no voids, no maintenance and repair costs and no insurance costs.
Reduce hassle and risk of being a landlord – HOP sources, purchases and manages the homes and arranges for long-term leases to buyers.
Your net income yield of around 4.5% increases contractually by 0.5% plus RPI each year (capped at 5% each year).
Buyers have invested in their homes and tend to look after them better than rental tenants.
No voids – 100% occupancy for 125 years until sold!
No maintenance, repairs or insurance costs – buyers look after the property at their own cost and reimburse insurance costs.
Buyer investment interest in the property is at risk in default or non-payment – a much larger sum than is normal in renting – so your recovery of arrears is more likely.
Residential asset-backed exposure and house price inflation – with shared upside.
The right product to tackle the affordable housing crisis – providing home ownership for people who are stuck in the rented sector.