Do you use debt to purchase properties?

No. All properties are purchased outright with cash. There are no mortgages on any of the properties.

How do you select properties to buy?

The fund’s Property Investment Adviser, Hearthstone, searches for locations offering good rental demand as well as an active re-sale market. We use data from a leading housing research consultancy, and through our strategic partners, Touchstone and Connells Group, we also have access to the trends in rental performance of over 20,000 managed residential properties as well as “grass roots” sales and lettings data from over 500 estate agency branches.

Hearthstone’s property team has many years’ experience, and vast professional connections with house builders and developers in order to source suitable properties for the fund.

Our  purchase strategy includes:

  • Diversifying the portfolio range with mainstream homes across the UK
  • Typically 2 to 4 bedroom homes or apartments in low rise buildings
  • Preferring to invest in clusters of home from an established quality builder to keep maintenance and valuation costs lower. We are also better placed to negotiate strong discounts
  • Focusing on towns/cities with good infrastructure such as proximity to transport links, leisure facilities, green space, key worker employers and good schooling
  • Identifying homes we wish to keep for the long-term to maximise rental income return and lessen the cost of selling

When can I buy and sell the fund?

Under normal circumstances, you can buy or sell shares in the fund on any UK business day. If selling shares (‘cashing in’ your investment), the sale will normally be settled four business days later. If using the WealthKernel portal, the money will usually be cleared into your bank account after one additional business day.

The fund aims to hold 10% to 15% of assets in cash to cover withdrawals and also has a stream of rental income that can be used to meet withdrawals in the short term. Note that in unusual market conditions, there may be a delay in withdrawing money if properties need to be sold. For more information, see this page