Home Investment by Partnership in Rent by: Bill Powell

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Home Investment by Partnership in Rentby Bill
Powell
Presented to International Union for Land Value
Tax Free Trade 28 May, 2004.
Housing Portfolio North Warwickshire Borough
Council.
Action for Land Taxation Economic Reform

• whpowell_at_iee.org
  www.fairshares.co.uk/fair-housing

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UK Housing in CRISIS

• Elderly living longerDivorceLate marriage
• Prices up 38 in one year
• Low / Variable interest rates
• Fewest built since WW2 (1945)
• First time buyers cant afford

NEED 100,000 more homes p.a.?
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Affordable Housing
MR Shared Equity R Rent at 40 discount M
Mortgage at 40 discount
M Open Market (mortgage)
R Rent at 40 discount
LAND discount 40 FREE Land from
Developer BUILD discount 40 from N Warks
social rents! Now our homes decay!
Discounts are in perpetuity.
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HAVEs vs. HAVE NOTs

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No Hope

• LOW INCOME Nurses Firemen Teachers
• IRREGULAR INCOME Waiters Fruit
  Pickers Musicians

RENT
POVERTY
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Winners
Small Mortgage
BIG Mortgage
FREE Housing
BORROW
World Cruise!
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Purchase by Mortgage
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Losers

• WAGE LOSS Ill Health Job Loss
• PARENTHOOD
• DIVORCE
• INCREASE interest rate

HOME REPOSSESSED
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Partnership Year 1
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Partnership Year 27
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Purchase in Partnership
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Flexibility

• Mrs JONES
• Career Break Parent for 5 Years

• Miss JONES
• Student Nurse In training RENTS Trained
  BUYS 8 units p.a.

• Mr Mrs JONES
• Retire with 365 units. SELL 16 units p.a.

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Affordabilityat 30 of Income
Includes 121 Maintenance per month
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Purchase by Mortgage
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Purchase in Partnership
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Rental in Partnership
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Social Housing in Partnership

• Social Units
• Rent Free
• Never Sold
• Maintenance Charge

Affordable Rent 231 per month Income
Required 9,263 p.a.
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Savers Choice?
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Savers Occupiers in Partnership
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Partnership True Equity Share

• Limited Liability Partnership (LLP)

• Easier entry than Mortgage
• Very Flexible
• Tracks inflation
• Shared interest in value