Jump to content
House Price Crash Forum

Onstep - 'ethical' btl investment..

Recommended Posts

'What is OnStep?

OnStep Homes is a new way for 'generation rent' to get onto the housing ladder. You, together with the tenant, provide a shared equity loan to a company to purchase a family home.

The tenant pays monthly rent to the company. You receive monthly interest and share the capital growth with the tenant.'





Edited by spacedin
Link to post
Share on other sites
  • spacedin changed the title to Onstep - 'ethical' btl investment..

Coz I'm One Step Closer to the edge.......think I'm 'bout to break!


Link to post
Share on other sites

3% return for the investor...is it secured against the asset? 

Nah of course not. 

Aye it's complete madness, why take all that risk, borrow so much money for such a small return if any?

And roping some poor tenant into the arrangement too, then getting excited about the fact the tenant will have to pay for repairs and maintenence. It's almost sadistic. 

Onstep? Nostep more like...

Edited by spacedin
Link to post
Share on other sites

I love how it says 'Capital growth of 3 x house price increase'. 

The whole reason why these buying props came in was because valuations had stretched affordability to the point where they were not affordable.

If you look at Property Partner (which had large exposures to London) many of their properties have actually fallen in value and the rental yields are now eaten up with fees and charges. 

Without capital growth the case for investing in property is none and if you wanted to be leveraged to house prices IMO buying the house builders themselves on the dips is better.

Link to post
Share on other sites

I expect if you look into it, the tenant is being stuck with all the risk in 1. Interest rate rises and 2. House price falls. 

There is such a thing as ethical BTL. It's an old fashioned landlord who never puts up the rent and doesn't bother charging the old dear who's been there 50 years. 

They used to exist. Don't know if they still do. 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.