We are currently raising money to purchase our first property through loanstock, which are fixed-term loans with interest from individual investors. Investors can loan amounts from £500-£500,000, and the length of time and interest rate can be agreed between the parties. This can suit both the investor and the co-op much more than a bank loan, with an interest rate that is higher than a savings account, but lower than a mortgage.
The loan is repaid from the tenants’ monthly rent, which makes it a safe fixed-term investment; whilst we factor the possibility of vacant rooms into our accounts, the lack of affordable housing in South Birmingham means that there will always be demand for our housing. In the unlikely event that the coop disbands, the house can be sold and creditors repaid. Investing in a housing co-operative is an excellent option for those looking to make ethical investments that benefit the community.
Not looking to invest but keen to donate?
Interested in investing?
Try out our Loanstock investment calculator below, to explore how you can make a fair return, whilst supporting our co-operative.
Loanstock Investment Calculator
- Using this calculator or sending us a proposal are not a commitment to invest in loanstock or a guarantee that an investment offer will be accepted.
- The term of any loanstock agreement is fixed, the initially invested sum cannot be withdrawn until the loan term is reached.
- Varna House Co-Operative is regulated by the Financial Conduct Authority (FCA).
- This investment, like any investment has risks. You can download our investor pack here for more detailed information, or reach out to us at investors@varnahouse.org.
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