High-Yield HMO Investment with Axxco Social Housing Case Study

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Overview
  • We transformed an £80k property into an 11.6% ROI social housing powerhouse
  • Stress-free investment: We handled everything in-house from sourcing and refurbishing to managing the property handover.
  • Guaranteed returns: The investor received a 7-year lease with an FTSE 250 housing provider offering no voids, and full property management.
  • A great end result: The investor received top-tier returns, full property ownership, transparency, and security.

How Axxco Transformed an £80k Property into an 11.6% net ROI Powerhouse

Forget endless property viewings and stressful renovations. Axxco's HMO social housing investment model takes the "buy-to-let" blues away, handing you a turnkey rental property primed for profit. Let's dive into a real-life case study that proves our formula works, turning a humble £80,000 property into a cash-generating machine.

Investment Approach

Our Social Housing investment model is a beacon for investors seeking both consistent income and high returns. We're laser-focused on uncovering hidden gems – underutilised properties in pre-approved areas – and unleashing their hidden potential. Our formula? Transforming them into high-yield social housing HMOs through a seamless process orchestrated by our expert team. From sourcing the perfect property to managing lightning-fast refurbishments with our in-house build crew, we handle everything stress-free. And we don't skimp on compliance. Rigorous adherence to stringent regulations ensures your investment rests on a bedrock of stability, making it a sustainable, asset-backed dream come true.

Axxco Social Housing Investment Model

Property Sourcing and Purchase

Identifying the right property can make or break an investment. At Axxco, we leverage years of expertise and rigorous market analysis to pinpoint properties located in suitable areas for high-yield and social housing potential. This case study exemplifies our commitment to strategic sourcing, securing a prime investment for just £80,000, perfectly aligned with our exacting criteria for optimal rental income and operational efficiency.

Our streamlined acquisition process ensures a smooth and swift transition from identifying potential to owning your asset. Our seasoned negotiators and legal team worked seamlessly to navigate paperwork, secure favourable terms, and finalise the purchase of this property within a remarkable 4 week timeframe. Gone are the days of protracted negotiations and bureaucratic hurdles with Axxco, you can be confident in a swift and efficient acquisition, minimising downtime and maximising your return on investment.

Financial Breakdown

The success of any property investment hinges on its financial performance, and this case study is a great example of our commitment to delivering an exceptional end result for our investors.

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Investment Breakdown
Property purchase price £80,000
 Refurbishment cost £36,000 
 Total expenditure  £116,000
Annual rental income  £13,520 
 Net Yield  11.6%

Social Housing Refurbishment overview

While the financial figures paint a rosy picture of success this case study is a great demonstration of the transformation of a property by our in-house build team, exemplifying a commitment to surpassing Social Housing standards and ensuring financial viability. The project was completed in a fantastic 4-week period, showcasing efficient execution without compromising on quality.

Axxco Social Housing HMO Renovation Before Picture

Safety and Compliance Enhancements:

  1. Electrical Safety: The electrical system was comprehensively overhauled, with every wire, socket, and switch meticulously inspected and upgraded. This ensured compliance with stringent electrical safety regulations, eliminating risks such as flickering lights or frayed wires.
  2. Gas Safety: The heating systems underwent rigorous inspections and certifications. This process ensured a leak-free, reliable system, prioritising resident safety and environmental sustainability.
  3. Fire Safety: An interconnected fire alarm system was installed, enhancing safety through swift and comprehensive protection.
  4. Emergency Lighting: Emergency lighting systems were strategically positioned to facilitate safe evacuation and mitigate risks during power outages.
Axxco Social Housing renovation HMO works

Comfort and Convenience Enhancements:

  1. Kitchen Upgrades: Kitchens were renovated with energy-efficient appliances, sleek worktops, and functional layouts, transforming them into modern culinary spaces.
  2. Bathroom Upgrades: Bathrooms were upgraded with modern fixtures, offering a private and comfortable space for residents.
  3. Living Area Revitalisation: Living areas were refurbished with fresh paint, new flooring, and furnishings, creating inviting and comfortable spaces for residents.
Axxco Social Housing renovation HMO completed

Inclusive Design:

The property incorporates modifications to cater to diverse needs, ensuring accessibility and comfort for all residents.

Efficient Execution and Financial Impact:

The rapid completion of the project, within 4 weeks, minimised downtime and expedited the income generation from the property. This approach not only transformed the property into a comfortable and compliant living space but also maximised the return on investment.

Social Housing lease implantation and benefits

Following the property's successful renovation to meet the housing provider's standards, we swiftly executed a seamless lease agreement between the landlord and the provider. This pre-approved property now unlocks a multitude of investor advantages, including:

  • A 7-year lease with an FTSE 250 company, with an option to renew
  • Day-to-day maintenance and repairs undertaken at no cost to the landlord
  • Guaranteed Rent (paid monthly by BACS when you hand over the keys)
  • Monthly property inspections
  • Council Tax and utilities paid
  • No void properties
  • No Management Fees.  No registration fees. No set-up fees
  • No rent arrears or debt collection
  • No Call outs payments to contractors
  • Full HMO Management
  • Administration of licenses and certification administered by our their team of experts
  • All properties are managed by in-house Housing and Maintenance Officers, supported by a team of administrators.

The end result

We transformed a modest £80,000 property into a lucrative engine generating an impressive 11.6% net ROI. This is the power of our innovative social housing investment model. We're passionate about unlocking stable, high-yield opportunities in this growing sector, with minimal stress for you.

Axxco Social Housing Investment Benefits

Our investor-centric approach prioritises:

  • Top-tier returns: Our proven model maximises your financial gain.
  • Effortless ownership: We handle the heavy lifting, so you can sit back and enjoy the rewards.
  • Transparency at every step: We believe in open communication and clear reporting.
  • Investment security: Don't settle for complicated or unsafe investments. Instead, invest directly, confidently, and profitably in government-backed social housing where you, as the investor, owns the asset and owns the leasing agreements.

Leverage our expertise and experience to make informed, profitable investment decisions. Contact us today to learn more about how we can turn your investment capital into a social housing success story.

If you require factual, current and professional investment advice from a company that cares about your money as much as you do – then get in touch. Our team of Social Housing specialists will give honest, clear and tangible advice that has your best interests at heart. Get in touch today for a free, no obligation consultation.

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