What are monthly incomes?
The tenants pays a discounted rent on the property in lieu of bearing maintenance and repair responsibilities. We keep a share of the rent as our revenue and you receive the rest.
For the first two years you receive regular monthly interest at the rate of 3% pa. This increases from the third year at the rate of inflation, protecting your returns from inflationary pressures.
We use a measure called CPIH (Consumer Price Index including housing costs) for indexing the returns. You can find out more about CPIH and its current value here.
As an illustration, if CPIH remains at 2.0% throughout, your interest income will be as follows:
- Year 1 - 2: 3.00% pa
- Year 3: 3.06% pa
- Year 4: 3.12% pa
- Year 5: 3.18% pa
- Year 6: 3.24% pa
- Year 7: 3.30% pa