Still time to invest in people powered homes!

Posted by Rob Greenland.

Over the next couple of months we’ll aim to answer questions that people have asked us – on social media, at events we’ve attended etc.  If you have a question, please get in touch and we’ll answer it on here.

It’s important, if you’re considering investing, that you don’t rely on information we share in these blogposts. If you’re considering investing, please visit either our Ethex profile, or the share offer page on our website.  There you will find detailed information on the share offer, our plans, our more detailed business plan, and the Rules of Leeds Community Homes.  And of course, if you have any questions, please get in touch with us.

 

Even though our share offer has not yet closed, there’s plenty of work going on behind the scenes to get ready for creating our first sixteen people powered homes.

The Leeds Community Homes Board has been meeting regularly to sort out detailed plans for the next few months – so that no time is wasted as soon as the share offer closes at the end of this month.

Now that we’ve passed our minimum target of £200,000 (at the time of writing we’ve raised £269,000), we are definitely going ahead with our plans to create our first homes.  But over the next three weeks we’re doing all we can to ensure that we reach our full target – £360,000.

Leeds Community Homes – creating People Powered Homes in Leeds from Leeds Community Homes on Vimeo.

As explained in our share offer document and business plan, £360,000 is the total amount we require to create our first homes – alongside a short-term bridging loan facility that will be used to enable us to buy seven homes which we will subsequently sell on.  £360,000 is what we need to buy the nine homes we’ll keep for social rent, and it covers all the other costs we incur in delivering this first project.  It also provides a small amount of money to help us to develop our next projects – so we can quickly move on to building more homes, as soon as this first project is complete.

Having discussed our plans with a range of ethical lenders, we are confident we will be able to take out a long-term loan, if we don’t reach the full £360,000 community shares target.  But we’re sure that you’ll appreciate that we are keen to minimise the amount that we need to borrow to help to make this first project happen.

There are a few reasons for wanting to do this.  Like any new organisation, we’re keen to limit the amount of borrowing that we take out.  Whilst our financial plans (available in our business plan) demonstrate that we can afford to repay the loan – primarily through rental income – it would clearly be beneficial to borrow less.  Whilst interest rates are relatively low at the moment, there’s no guarantee that they’ll stay that way over the next 15-20 years.  So by minimising the amount we borrow, we help to manage the risk of having to pay higher interest rates in the medium term.

Borrowing less – or not at all – can also bring benefits in the longer term.  We have big ambitions – to be involved in creating 1000 homes over the next ten years.  It’s possible that in two or three years time we’d like to borrow money for our next project.  If we’ve borrowed less (or not at all) to deliver this first project, it puts us in a stronger position to borrow in the future.  This could help us to scale up our activities more quickly – and make more of a difference in Leeds.

We’re really grateful to the 200 people and organisations who, between them, have invested close to £270,000 in Leeds Community Homes so far.  People like Helen, Anne and Martin

Anne Braithwaite – backing Leeds Community Homes from Leeds Community Homes on Vimeo.

If you’re in a position to consider investing, but haven’t already, all the information is here.  The share offer is open until 31 January, and the minimum investment is £100.

Every £ that we raise through community shares strengthens our business model.  If you’re able to consider investing, we’d love to have you involved as together we create People Powered Homes.

 

It’s important, if you’re considering investing, that you don’t rely on information we share in these blogposts. If you’re considering investing, please visit either our Ethex profile, or the share offer page on our website.  There you will find detailed information on the share offer, our plans, our more detailed business plan, and the Rules of Leeds Community Homes.  And of course, if you have any questions, please get in touch with us.