High yield, bespoke investments
What is GreenDoor?
GreenDoor is a product developed by Acorn Property (South Wales) Ltd (Acorn) which offers investors who wish to enter the buy to let (BTL) market, a hassle free, tax efficient, turnkey service to build their own portfolios under a professional umbrella.
Who are Acorn?
Acorn is a professional BTL company with a sizeable property portfolio in South Wales, including the Welsh valleys north of Cardiff.
Whilst BTL has been subject to a barrage of legislation over the past few years BTL can still offer good returns in the short but especially medium to long term.
Why South Wales ?
The area of Acorn’s specialisation in South Wales has a substantive regeneration programme underway which includes inter alia;
- A major new shopping centre in Pontypridd
- A £10m+ enhancement to the University of Pontypridd
- The Welsh Office for Works and Pensions opening in Treforest in 2020 bringing 1700+ staff to the area
- Improvements to the transport infrastructure including fast train links to Cardiff and beyond, already
operational in parts and due for completion by 2022
- A proven and growing demand for rental properties in this area
- Acorn has a team of property professionals with over 10 years in-depth experience in South Wales, particularly in areas within easy commuting time to major employment locales e.g. Porth to Cardiff 20 minutes
- Acorn has built a very good reputation for quality and performance with asset managers, banks, lawyers, housing associations, etc often allowing the purchase of properties before they come on the general market
- Acorn has appreciable experience in managing properties gained through operating its own sizeable portfolio
How does it work?
- Typically, GreenDoor source, acquire, renovate and tenant freehold property in the £60,000 to £90,000 range in a single purpose private company
- All title deeds, rental agreements, etc are in the name of this company
- The property is onward sold to a purchaser via the sale of 100% of the shares
- Any future purchases could be in this company
- A full rent collection, maintenance and compliance service is provided by GreenDoor at 15% of the rental
What is the return?
The return would vary from property to property but typically as follows;
- A terraced freehold house with an annual rent of £5,940 would cost £73,995
- i.e. a gross return of 8.03% and a net return of 6.83 % after 15% service charge
- This property would have a retail value of approximately £80,000
- The purchaser is entitled to all capital appreciation
Note: At any time, the purchaser could sell the property or change management company