The Joint Equity Scheme is for first-time buyers, home owners and property investors. This site is developed and maintained by Joint Equity ltd. ©Joint Equity (2006)
Joint Equity Ltd works with Mortgage Beaters Ltd to provide case studies & Illustrations to prospective Owner-Partners & Investor-Partners. Joint Equity Ltd does not carry out any regulated activities and so is not regulated by the FSA (Financial Services Authority). Joint Equity Ltd are introducer appointed representatives of Mortgage Beaters Ltd, which are authorised and regulated by the Financial Services Authority.
The content of this website is accurate to the best of our knowledge and for information only. We do not provide financial advice.
No advantage over Buy-to-Let
► A new ethical form of property investment
When we launched Joint Equity there was, for the first time, a real alternative to
buy-to-let. Before that, the only investment route was to buy a property and let
it with all the problems that entails.
This route popularly known as the Buy-to-Let market and it has seen recent growth
of over 48% pa (data from the Council of Mortgage Lenders). In fact, growth in this
sector has sustained property price inflation in many areas.
► Buy-to-Let problems
In buy-to-let you own the property outright and your security is your name on the
deeds. It is common for the buy-to-let owner not to want to get involved in the day
to day running of the property and they employ estate agents to manage the investment
by finding the tenants, maintaining the property and collecting the rent. The quality
of service provided by the Agents is very variable and can be costly - up to 17.5%
of the rent collected.
► Buy-to-let & low profits
This can mean that the buy-to-let property makes no annual profit and the investor
relies on the value of the property continuing to rise to provide the return on investment.
► Other Issues
However, buy-to-let has some other significant problems;-
- Long, irregular and unexpected void periods
- Wear and tear costs
- Damage
- Non payment of rent
- Upgrading to stay with market fashions
- High management costs
► 2 new ways to invest in property with lower costs & risks
1: The Joint Equity Scheme – what this site is all about and available UK wide now.
Higher returns and lower costs than Buy-to-Let.
2: REITs (Real Estate Investment Funds) - They are exclusively commercial and retail
at present. If they extend to residential property in the future REITs will provide
lower risks and lower returns than Buy-to-Let
► What about Sipps?
Sipps (Self Invested Personal Pensions) - currently residential property is ineligible
for inclusion in a Sipp it maybe that a future Chancellor will extend the tax legislation
to permit the inclusion – when is anybody’s guess and how does it affect the maximum£1
million value of the fund regulations?
► A top level comparison with Buy-to-Let for the same investment
► Already a Buy-to-Let investor?
But what if you are already a buy-to-let investor?
Good news! You can increase your investment potential and annual returns by converting
the buy-to-let into a Joint Equity investment. Learn how by following this link.
Joint Equity the only real alternative to Buy-to-Let
