Why Invest?

The 3 Year Social Housing Bonds have a coupon (interest rate) of 12% per annum. The returns on these bonds are supported by the US Govt via the Housing Choice Voucher Program, previously known as Section 8.

We let the properties in our portfolio to low income families who in turn qualify for rental assistance from the HUD (Housing & Urban Development) which is a US Govt department. This means that the rental income that we receive has the full backing and weight of the US Govt behind it. From the rental income we pay the interest rate on our bonds.

Therefore, by purchasing a Social Housing Bond you can achieve a significant increase in your return when you compare this to the rate available on 3 year US Treasury Bills (T-Bills). See below.

SAN FRANCISCO (MarketWatch) 9th October 2012 -- The Treasury Department sold $32 billion in 3-year notes on Tuesday at a yield of 0.346% -- up from last month but still near the lowest levels seen at an auction.

Why Invest in US Housing Graph
Source www.economagic.com

Both of these products, that is T-Bills and Section 8, are underwritten by the US Govt.

The Social Housing Bonds are also asset backed. The Bondholder has a Fixed Charge on the shares of Colonial Capital Properties LLC. This provides the dual benefit of reducing risk and increasing security.

We also ensure that the amount of Bondholder funds invested never exceeds 85% of the value of the property portfolio and with house prices in the US finally moving upwards the Bond holders can rest assured that there will always be enough equity in the portfolio if they need to foreclose* and make quick exit. (See Standard & Poors Chart below)

Why invest in the US houseing market

The Bond structure is fully SIPP compliant which allows us to receive funds from most types of Pension Schemes.

The interest is paid every 6 months.

All funds invested are held in a secure solicitor’s escrow account, until the bonds are issued.

Investment can be made in either GB£, US$ and EUR€. All interest payments and payment on redemption are made in the original currency invested, thereby removing any currency risk for the investor.

The Fixed Charge allows the Bondholders full rights or repossession (Foreclosure) in the event of a default.


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