Build-to-Rent (BTR) homes are residential properties that are purpose-built for rental occupancy rather than individual ownership. For residents, Build-to-Rent homes address the current rental market needs for affordable.
If you’re considering Build-to-Rent homes as either an investor, it’s crucial to understand exactly what they are, the different types, and the pros and cons of it.
A. FEATURES
As the name suggests, Build-to-Rent homes are residential properties that are purpose-built for rental occupancy rather than for individual ownership. Unlike traditional real estate models where developers construct homes for sale, in the BTR model, we create homes or even entire communities of homes for Land Owners, with the intention of renting out every unit to tenants looking to rent long-term.
More often than not, this results in a professionally managed, cohesive living environment designed to meet the needs and preferences of modern tenants.
- Rental Income is the primary source for repayment
B. TYPES OF BUILD-TO-RENT HOMES
Build-to-rent homes come in various architectural styles, it gives tenants the flexibility to choose from a home that best suits their needs. BTR homes can mimic the traditional suburban family home or feature a diverse range of building designs, which include:
These refer to tightly clustered, professionally managed, freestanding single-family residences, often numbering in the hundreds.
- Single Family Homes: Single-room self-contained, 2-4 bedroom apartment or houses (detached or semi-detached), etc.
- Apartment Complexes
C. BENEFITS
1. Better Returns : Better returns than buying bare land and waiting for appreciation. With a rental property, you get both capital appreciation of the property and rental income.
- Offers a suitable pension investment than any Government of Ghana instrument where you don't have absolute control over your investments
2. Rental Income (Cashflow) : Better investment vehicle and relative returns than stocks, treasury bills or government of Ghana bonds.
3. Passive Income : Can be completely passive
4. Tax Benefits : Better than benefits than most other investment vehicles
5. Property Appreciation : Double-digit property appreciation betas returns from treasury bills and all other regulated investment vehicles in Ghana.
6. Portfolio Diversification : Perfect diversifier
7. Control of Asset (Direct Control) : Your brick-and-mortar is directly under your control 24/7. You don't need to walk into a 9-to-5 investment house office to benefit from your assets, and neither do you have to go on a demonstration (enter DDEP) to retrieve your money.
8. House Hacking Potential : You may not qualify for our owner-occupier residential project by virtue of the fact that you don't have permanent employment to demonstrate proof of regular monthly income above GHS2,000, but you can qualify for this Build-to-Rent option which does not require you to show proof of employment or regular income and gives you the option to live in your own project rent-free whilst income from your rented units pays for the project itself.
9. General Real Estate Benefits : Owning brick and mortar asset offers several benefits that comes with Real Estate as against other investments instruments.
D. REPAYMENT PLANS
If the current verifiable net regular personal or some other commercial monthly income of the project owner is enough to pay us back after completion, there will be no need for providing us with a Feasibility Study (Rental Income Coverage).
E. RENTAL INCOME AS REPAYMENT
It's optional to instruct us to rent your completed Build-to-Rent Project via Rent Now Pay Later Ghana (corporate sibling & part of The DCANS Group Limited).
F. REQUIREMENTS
You must have your own litigation-free land, registered in your own name or a business you're a shareholder or owner of.
- Proof of permanent employment is not required if you have credible rental values commensurate with post-construction monthly repayment costs.
G. HOW TO APPLY
Apply online here.
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