Investing in property
One way of increasing your resources as a social enterprise or charity is to acquire new or existing property from a variety of procurement routes. For small and medium size organisations investing in property can be one of the most important corporate decision they make to secure a long term future. An additional secure income stream is generated which even after deducting management and maintenance costs is profitable but should also meet charitable or social enterprise objectives.Most importantly it can be finance via a range of mortgages and once repaid often leading to a substantial capital gain.The charity is also often in a position to offer additional services as a package making itself even more attractive to both individuals seeking services and also commissioners from either local government or health bodies. Cara community services is happy to provide further information on this type of opportunity for your consideration.
If you do decide the above is an attractive option further consideration is required as to the best procurement route for your organisation.Building new property is often the most lucrative by taking the developers risk and gaining the developers profit.There is also the option of buying completed new from the developer (often at a small premium for new assets) or `off plan` (discounted as unbuilt) or directly from vendors via an Estate Agent or via an auction. All options have `risks & rewards`it depends on your preferences. Cara community services can not only provide further information but also provide the range of services required for you to obtain the best from your chosen procurement route.
In a time of economic uncertainity we would contend that now is a good time for charities to invest in property depending on a wide range of factors.Although history can be no guide to the future Charities with property assets in the last 60 years have seen increasing values despite economic boom or bust,and inflation,providing a good return on the investment.In 1952 the average house price was £2,000, by 1963 it was £3,000,by 1972 it was £7,000,1982 it was £27,000, by 1992 £64,000,by 2002 it was £108,000, and by 2012 £162,000. These growth in values outperformed inflation over the period by 250%.
Reflecting on our curent economic `Age of Austerity`the conclusion is clear- investing in property is a good move for any social enterprise, charity or voluntary group wishing to ensure it has a long term future when other funding streams are dwindling or disapearing. However we known from our economic history of `boom & bust` that all property investment carries a degree of risk as no one can fortell the future.
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Please note we accept no responsibility for anyone relying upon the above (which is subject to changing circumstances & markets).To do so is entirely at your own risk .The above is simply given as a guide to the process and some of the detail involved. We recommend that readers obtain further professional advice & assistence.