You are here: Home - Investing - Experienced Investor - News -

New bond tackling social housing shortage pays 7%

0
Written by:
18/06/2019
A new investment aimed at tackling the UK’s social housing problem has launched, offering 7 per cent interest.

The investment is via a debenture, which is a tradeable form of corporate bond, in Pax Apartments Ltd, and is available through peer-to-peer ethical investment platform, Abundance. It offers 7 per cent annual interest for a 19-month term.

While the headline rate may turn some heads, it’s worth remembering that these schemes are high risk. Investors may not get their capital back and these investments are not covered by the Financial Services Compensation Scheme, so there’s no compensation if something goes wrong.

Pax Apartments Ltd hopes to raise £3.1m to complete the redevelopment of a warehouse in Liverpool’s Ropewalks area. It plans to create 33 one and two bedroom apartments, which will be let as supported living accommodation and affordable housing to households on local waiting lists.

The apartments will be maintained and managed by a registered social landlord.

Liverpool has 16,500 people on the council waiting list looking for homes. Across England, more than a million households are waiting for social housing, according to 2018 data from housing charity Shelter.

The minimum investment is £5, and the debentures are eligible to be held in an Innovative Finance ISA so returns are tax-free.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
10 ways to save money at festivals

Around 200,000 festival-goers will head to Glastonbury next week, while thousands more will descend on Bestival, Latitude and Creamfields later...

Close