US Social

Housing Bond
COLONIAL
CAPITAL
www.ccgplc.com
Who Are We?
Colonial Capital was formed in 2011 to take
advantage of the dislocation taking place
in the US housing market. Along with our
partners we have already sold properties with
a combined value in excess of $30m.
We acquire distressed property, typically 2-4 unit multi
dwelling and single family homes throughout the US.
All properties are acquired direct from US Banks and
Government Sponsored Entities (Fannie Mae, Freddie
Mac etc) via Foreclosure sales by our experienced
team of property negotiators. Each property is given
a comprehensive refurbishment which includes, New
Kitchens, Bathrooms, Windows, HVAC and Hardwood
Flooring.
We either sell these properties, fully refurbished
and pre tenanted, direct to buy to let investors at a
minimum net yield of 20% - 22% or we keep them to
benet from the long term rental income.

Social Housing Bond
& Investment Strategy
The Social Housing Bond launched in early
2012 has recently been SIPP (Self Invested
Pension Plan) approved. This means that
investors who hold a SIPP can now boost their
Pension benet by up to 12% per annum.
At a time when most pensions are struggling to make
2% or 3% it is good to know that not only can you
achieve a 12% return, but you can do so whilst also
helping to re-house low income families under the
Housing Choice Voucher Program, formerly known
as Section 8.
This allows the investor to achieve high rental yields
that are paid and underwritten directly by the U.S.
Government.
Table 1 below shows the Housing & Urban Development
(HUD) departments agreed rent payable in Chicago for
2014:
One-Bedroom $826
Two-Bedroom $979
Three-Bedroom $1,248
Four-Bedroom $1,455
Table 1

Bond Investment $80,000 Bond Interest @ 12% per annum $9,600
Property Type 3 Apts 8 Beds Total Bond Interest Payable $28,800
Rental Income as per FMR $41,700 Redemption Payment @ 100% $80,000
Cap Rate 25%
Sale Proceeds $166,800 Total Repaid to Bond Holder $108,800
Table 2
What is the Housing
Choice Voucher Program?
The Housing Choice Voucher Program is the
U.S. Federal Governments major program for
assisting low-income families, the elderly and
the disabled to afford decent, safe and sanitary
housing in the private market. Since housing
assistance is provided on behalf of the family
or individual, participants are able to nd their
own housing, including single-family homes,
townhouses and apartments.
The participant is free to choose any property
that meets the requirements of the program and
is not limited to units located in subsidised
housing projects.
Housing choice vouchers are administered locally by
Public Housing Agencies (PHAs). The PHAs receive
federal funds from the U.S. Department of Housing
and Urban Development (HUD) to administer the
voucher program.
A family that is issued a housing voucher is
responsible for nding a suitable housing unit of the
familys choice where the owner agrees to rent under
the program. Rental units must meet minimum
standards of health and safety, as determined by
the PHA.
A housing subsidy is paid to the landlord directly
by the PHA on behalf of the participating family.
The family then pays the difference between
the actual rent charged by the landlord and the
amount subsidised by the program. Under certain
circumstances if authorised by the PHA, a family
may use its voucher to purchase a modest home.
A typical acquisition and refurbishment cost for a three
apartment unit would be approximately $80,000. The
rental income generated by this property would be
$41,700. This would provide an un-leveraged yield of
51.4% or an un-leveraged prot of $86,500 if we sold
at a cap rate of 25%.
The sale of just one of these 3 apartment properties
generates enough cash to cover all the Bond interest
payments and the nal redemption payment. (Based
on an investment of $80,000, see table 2)

Limited number of bonds available.

To take advantage of the exceptional returns

without hassles of direct ownership.

Guaranteed returns compounded every 6 months.

Short to medium term. Returns & redemption

payments are concluded after 3 years.

Asset backed Investment.

All bond holders have a 1st lien charge over

entire property portfolio until all bond payments
have been disbursed.

85% rule. The amount of Bondholder funds

under management cannot exceed 85% of the
value of the property portfolio.

Assured above average returns of 12% per

annum.

Secure exit strategy.

Fully SIPP/SSAS compliant structure.

No need to register or pay U.S. taxes.

No need to open a U.S. LLC or bank account.

Secure alternative investment managed by one of

the largest title insurance companies in the U.S.

Property management, trading and development

team in place with over 40 years experience.

No worries about maintenance or refurbishment

issues.

No void periods.

Low entry level, just GB10,000, US$10,000 or

10,000

No currency risk to investors. Funds can be

invested in Sterling, US Dollars & Euros.

Interest Redemption payments paid on original

currency invested.
Why Should I Invest Now?

Flexibility. More bonds can be bought for just

GB1,000, US$1,000 or 1,000 each.

The ultimate armchair investment. Purchase

your bonds and thats it. Sit back. Relax and
wait for the returns to arrive.

A once in a lifetime opportunity to benet from

low property prices and high rents in the worlds
largest economy.
Yr1
1,200
Yr2
1,200
Yr3
1,200
Redemption@100%
10,000
Total
13,500
Annual Equivalent
12%
Minimum Investment - Fixed Annual Returns 10,000 @ 12%
COLONIAL
CAPITAL
Colonial Capital Group PLC
Suite 14 & 15 The Aquarium
101 Lower Anchor Street
Chelmsford
Essex CM2 0AU
Tel: +44 (0) 1245 494 977
www.ccgplc.com
info@ccgplc.com