Barratt's show home leaseback scheme has proved a successful investment option for businessman Nick Faulkner.
Nick Faulkner has been investing with Barratt since 2009 with his first purchase an apartment in the south west. This was quickly followed by the addition of a house and Faulkner then sold both properties and bought two further Barratt houses.
His portfolio has continued to increase with Barratt properties and Faulkner praised the approach from Barratt which helps investors such as himself. "It's all very easy with Barratt and I'd definitely look to more purchases with them.''
Barratt's show home leaseback scheme comes with a guaranteed yield of 7 per cent and under this option buyers have the opportunity to buy the show home at selected developments in the region and then immediately lease it back to the five star housebuilder for up to three years to use as a marketing suite.
"Rather than have to worry about untidy tenants, the investor knows that we will maintain the property in pristine condition,'' said sales director Caroline Hill. "Barratt is also the only major housebuilder which guarantees internal fixtures and fittings for a full five years."
As an investor, Faulkner says he finds working with Barratt straightforward and easy. "The purchase process is always professional and hassle free and with Barratt as a tenant I have no letting fees, no management fees and a good tenant.''
Faulkner often sells at the end of the Barratt tenancy to fund his next Barratt purchase but Hill said that other buyers using the leaseback scheme keep the homes as long term investments. And with rising rents in the south west, she said, rental homes are increasingly in demand.
"Many of our investors take the view that the direction of house prices in the medium term is up," added Hill. "So they expect to be sitting on a tidy profit in three to five years' time."
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