Frequently asked questions

Do Safe as Houses charge any fees to invest?

Safe as Houses do not charge any fees.

Why different interest rates offered between the SAH ISA Bond and the SAH Listed bond?

The SAH ISA is a retail offering and as a result is governed by the FCA which means a lot more regulations and costs for us to cover in comparison to the listed bond. ISA’s are also restricted to a maximum investment of £20k meaning there will be higher volume of ISA’s compared to the listed bond but cumulatively worth a lot less low value process which again is a costly process and those costs must be covered.

Why offer an SAH ISA Bond if its more costly and difficult to operate?

SAH would like as many people as possible to benefit from the SAH offering.

Is it an Equity offering?


When was the company formed?

The company was formed in 2016.

As a new company, how can you be sure to meet your objectives?

Whilst this official investment structure has only been in place since 2016, in reality the founders have been operating in this sector for many years and historically have never made a loss. Hence the reason for creating a bond and giving the opportunity for others to share in their success.

Why listed bonds?

Listing the bonds makes the SAH proposition even more attractive as investors can benefit from holding their bond within their pension which means they receive all of their interest without any tax deducted at source.

Is the company listed or it’s the individual bonds / notes?

No, the company is not listed - it is individual bonds that are listed.

How long does the listing take and what do I see?

Bonds will be individually listed. Applications will be made to list the bonds after funds have been received and prior to the first interest payment. Once listed you will be provided with an ISIN and register number.

It states that it's eligible for Pension Funds and Products can you please explain further?

Yes, the SAH bond is a listed bond to ensure it is compatible for use in Pension funds. One of SAH founders’ primary reasons for creating this bond proposition was to ensure that those in retirement or nearing retirement could use it for income drawdown and achieve a high rate of return on their life savings. You should discuss this with your advisors and SAH will happily meet or discuss with them.

What if I don’t have a SIPP or SSAS or a Pension product?

It is not a necessity to have a SIPP, SSAS or pension product to enable you to invest in SAH, however, if you would like to discuss these options SAH have strong relationships with pension professionals who have already ‘signed off’ on our proposition and will be able to discuss your needs and present you with the relevant options. Please note SAH cannot recommend or advise on any pension products however we can introduce you to those professionals, if you wish.

Why Channel Islands/Guernsey?

The Channel Islands carry out a more robust ‘gold plated’ standard of due diligence that is held in high esteem across the globe, SAH wanted that credibility and comfort for their clients.

How can SAH afford to pay a fixed 8% coupon for 5 years?

SAH have focused on a high margin niche within the property market and profit from existing property regeneration rather than speculating on conventional property development. The banking crash of 2007/8 put major restrictions on the lending and financing of property projects which led to a drop of property exchanges pre-2008 of 1.5m properties per year to a low of 700,000 and this number has never risen above 960,000 since then. Meaning in the last 10 years approximately 6 million people that would usually be able to move house, have not and are now living in potentially unsuitable properties. In addition to this – the number of registered property developers pre 2008 have dropped from 20,000 to 2000, meaning that there is a ready made pot of properties available waiting to be redeveloped and made fit for purpose. This ready made pot of properties comes to an asset value of £280 Billion in comparison to the £5.7 Trillion total property market place.

When you consider all this together with the strict protocols SAH have put in place, this ensures they can comfortably pay an 8% coupon each year.

Is there likely to be a shortage of suitable properties?

As can be seen from above, the niche that SAH operates in is circa £280 Billion in size. Profiting from property regeneration is unlikely to stop – especially as social housing and care homes will always be in demand. From our wealth of experience in the industry, we know that it will always be likely that there will be distressed sellers and distressed properties.

You mention you operate within a property niche, what exactly is that?

The umbrella term of discounted properties covers the following headings.

  • The property is discounted because the seller needs to sell quickly.
  • The property is discounted because it has been repossessed.
  • The property is discounted because the property is distressed.
  • The property is discounted because it is no longer fit for purpose or could be used for a better purpose

We have access to literally billions of pounds of such opportunities. The reasons these opportunities are not ‘snapped up’ by other developers is due to the lending restrictions now in place since the 2008 financial crisis, hence why we buy all our properties unencumbered.

SAH states it’s not a conventional property developer in what way do you differ?

SAH focusses on existing stock, a key strength is a network of off market supply and off market buyers i.e. wholesale not retail.

Sellers include, Asset Managers, Banks and institutions.

Buyers are investors and institutions looking for Capital Growth and or Yield with the bias tending to be towards Yield. Or buy to order for a specific purpose such as assisted care homes.

SAH therefore rarely speculates and has a clear idea of who the buyers are going to be from the outset and in many cases, are armed with buy orders for specific post codes and pre-determined specifications.

How do assisted care homes fit into the discounted market that you operate in?

In general, operators of things like Assisted Care homes are not permitted to speculate on property and prefer to buy ‘oven ready’ solutions as they make their money from the purpose of the operation and not the properties themselves. SAH seek out existing properties that can be adapted to meet the requirements of those operators and supply it to them.

Does Market Fluctuation impact SAH?

Unlike conventional property development that focusses on long term holding of property for either Capital Growth and or Yield. SAH focuses on a pre-determined margin of no less than 2.1% per month and endeavors to turn projects around in 3-6 month. We will never tackle a project that is likely to last more than 12 months. This mitigates the risks and impact of any market fluctuations. If the market is low SAH buys low and sells low and if the market is high, we buy high and sell high.

The investment term is 5 years – what happens if I need my money out before then?

Yes, the money is locked in for 5 years, the reason for this is to insure we can pay a fixed return and as SAH re-invest 80% of profits generated to compound the benefits, the longer the runway SAH has, the safer the proposition becomes. Given the Notes/ Bonds are listed, a market maker can be appointed to trade those bonds. SAH will also consider on a case by case basis individual client requests for assistance if they are facing unforeseen challenges but this will only be in exceptional circumstances. Please note, you will not be eligible for the potential 32% OTE bonus if you do not hold your investment for the full 5 year term.

Is there any possibility for a shorter lock in period?

The original note is dated March 2017 and runs from 5 years from that date. It is limited to £50m. Once £50m is reached a new note will be issued if deemed appropriate. Multiple people can participate in that.

As each year passes a new note with a similar limit will potentially be issued and this allows participants to take up either the original loan and receive a prorate for the remaining period in interest and bonus or take up the offering for that year which will run for that year.

Will it be evident what time frames I have signed up for?

Yes it will be made crystal clear when you sign up when the note expires, when interest payments will be due and how the prorate will work regarding the potential bonus.

It states that the interest of a fixed 8% cannot be drawn down in the first year!

Yes, that is correct, as the money must be put to work to earn the 8% return. Therefore, the first interest payment will be paid at the end of the first year. Thereafter the client can request quarterly, bi annually or annual repayments.

Can I leave the money in and have it compounded?

Yes, you can request that the interest payment be held for the five-year period and be compounded. This will be handled on a case by case basis subject to term and amount.

Can I invest for longer than 5 Years?

For practical reasons SAH focus on 5 year periods. If you wish to invest longer then you can participate in the next 5-year cycle once you have been repaid.

It would appear, that SAH will be highly profitable is it possible to get more than 8%?

There is no guarantee that the current and historical levels of profits will continue even though all the indicators would imply they would. SAH therefore took a balanced view and decided to offer to fix 8% per anum. And thereafter offer a bonus of share of profit up to a cap of 32% of the original capital sum.

How is the OTE bonus monitored and ascertained?

SAH have appointed the audit division of Smith & Williamson. The bonus payment and calculations will be based on their audit.

What is the security of the Notes / Bonds?

From a belt and braces legal perspective they are classed as unsecured. However in reality they are 100% asset backed against properties that have all been purchased at a discount for cash, totally unencumbered and against the whole company i.e. across all properties and assets and not any individual property. There is also a set of protocols put in place within the legal agreements that insures that SAH will not be able to purchase a property unless it’s at a discount and is likely to return more than 2.1% per month. This leads to a very robust balance sheet in either cash or readily realizable property assets.

What do you mean by 100% Asset Backed?

SAH only purchase property at a discount and have a buyer in mind or lined up for that purchase. Therefore, an increased value is readily realizable and the balance sheet is enhanced with every purchase and sale. SAH does not carry out any other activity so all funds are therefore 100% asset backed either in property or cash or the share value of the company.

Why for cash and no gearing (other than the Loan Notes and Bonds issued by the company)?

Buying for cash gives SAH complete control and is not liable to a bank recalling its loan or repossessing the properties. It also insures that SAH never over extends itself and only operates within the funds it has available. Many traditional property developers faced severe challenges by over extending themselves.

Whilst you cannot legally guarantee and are obliged to use the word fixed, what is the reality?

Other than an unforeseen overnight complete crash of the market and economy the fixed rate of 8% interest per year is assured as is the repayment of the original capital sum. The only thing based on performance is the potential OTE Bonus of 1% above inflation (capped at 32%). Therefore, if targets are achieved (which historical and current trading would imply that they will) then you will receive 40% interest over the 5 years plus your original capital sum and OTE bonus of 1% above inflation (capped at 32%) on that sum. You can use the calculator on the site to see the likely monetary outcome.

What if Safe as Houses go bust?

Whilst there are no guarantees, we have made sure our proposition is as robust as it can be!

The protocols put in place by SAH which are independently monitored and enforced by our corporate directors makes it highly unlikely that this would occur. The only circumstances where SAH could go bust (which we would hope would never happen for everyone’s sake!) would be if there was a complete market and economic crash in the UK. Even then - given SAH operational structure and nature of our business, we are confident we have protected ourselves enough to survive this and protect our investors money.

© 2018 Safe as Houses Investment PLC

Safe as Houses Investment PLC
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Units 16-20 Enterprise House, Springkerse Business Park, Stirling, FK7 7UF