Finding attractive buy to let opportunities in this day and age can be a struggle, especially since the average rental yields in the UK are below 4%. Furthermore, finding an affordable home, choosing suitable tenants, and managing and maintaining a home are all some of the biggest challenges to exist when entering the property market.
Concept Capital Group is an alternative buy-to-let provider that is offering a simpler and more profitable alternative to traditional Buy To Let. In the following article, we’ll run you through Concept Capital Group’s alternative opportunity and shine some light on whether it’s worth it or not.
Concept Capital Group’s Buy To Let Opportunity
CCG’s Buy To Let opportunity offers the perfect balance of social impact and profit. The Company primarily markets and sells prefabricated homes. Following the sale of the home, they get the home built, placed on land, furnished, and tenanted through strategic partnerships.
Within 3-6 weeks of the home being sold, it is ready for occupancy and is tenanted with a low-income or government-assisted individual or family. On the other hand, the buyer doesn’t have to worry about anything; they simply sit back and receive a monthly income of £333.33 into their account.
In short, Concept Capital Group is selling fully managed Buy To Let homes and tenanting the homes with government-assisted people. As a blog that talks about things that truly matter in the financial space, we think this is a great initiative to help resolve the UK housing crisis.
How Impactful is the buy-to-let opportunity?
Over the past three years, Concept Capital Group has stated that they’ve housed an estimated 500 families and individuals in lovely homes across the UK. According to a study by Housing.org.uk, in 2020, there was a waiting list of over 1.6m people in need of social housing. This number has only been increasing over time, making the housing crisis more critical now than ever.
Furthermore, according to The National Housing Federation, out of 340,000 that need to be developed in the UK, 145,000 need to be affordable.
We think Concept Capital Group has come up with a profitable way to build homes for those in need, and it could grow to great extents if the business model continues running as planned. The Company has stated its goal is to house as many people as possible over the next decade.
Is Concept Capital Group’s Buy To Let opportunity Sustainable?
After speaking with Concept Capital Group’s consultants, we found the business model to be very sustainable. This is because the Company does not accrue any debt at all. They get homes built from the clients’ money and keep a portion of that amount as company profit.
Following that, the Company obtains a small management fee from the total rental income each month. Based on an estimated 500 homes sold, the Company has a solid monthly income. The chances of them going bankrupt seem very low.
Furthermore, we were pleased to see the company timeline. It depicts that the Company has grown at a rapid pace since their entrance into the market back in 2018, raising over a million in their initial year. If Concept Capital Group continues to sell homes at an increasing pace, its business model will grow even more robust and sustainable.
They have a solid presence across social media channels, including Instagram, Facebook, and LinkedIn. They also post on Zoopla and run email marketing campaigns. Furthermore, the Company has multiple partnerships with real estate agents who help them grow their client base.
How are Concept Capital Group Reviews Online?
When it comes to studying a Company’s online reviews, we rely solely on trustable platforms such as Feefo and Trustpilot. This is simply because the reviews on there are scrutinized, and hence only from trusted customers.
The Trustpilot Concept Capital Group Reviews are excellent, with a rating of 4.7 based on 30 client reviews. You can view Concept Capital Group’s official Trustpilot reviews here. Furthermore, they have a Feefo rating of 4.9 from 64 clients. You can view CCG’s Feefo reviews here.
What are the Returns like?
Each home costs only £39,999. The homes are cheap as they’re factory built, and the Company is not selling land. The land the home will be placed on is accessed through a strategic partnership.
Once you’ve paid £39,999, there are no additional costs. You’ll start receiving your income 3-6 weeks following the purchase. The income is fixed at £333.33 per month, which adds to £3,999 per annum. This is a 10% per annum yield.
The yields can go up to 11.1% if the buyer purchases more units for a lower price. The best part is that the Company has a Buy Back incentive in place. You can opt for a buyback every two years and get your home’s worth back. In year 2, the home can be sold for £39,999 & in year 12, it can be sold back for £30,000. If a client chooses to keep the home for 25 years, the home can be sold for scrap value – as the buyback is valid until year 12.
Should you invest in Concept Capital Group’s Buy To Let?
To decide whether or not this opportunity is worth it, compare it to other options. The average rental yields on traditional buy to lets are 3.6%, whereas inflation has now crossed 9%. Similarly, ISA’s offer returns of around 1.6% and stocks / shares offer 10%. The challenge with stocks though, is that they’re high risk in comparison, and demand attention if not done through an expert.
It’s also helpful to compare the returns with inflation to ensure you’re not losing money. To learn how inflation can affect everyday costs, read our blog here.
Nonetheless, we highly recommend seeking independent financial advice before investing in Concept Capital Group’s alternative Buy To Let. All sorts of investments or purchases come with a risk factor.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.