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    Rent to Buy Property Investment

    • 18.00%-22.50% Gross1 projected total return on investment over 2 years (minimum investment period)3
    • 8.20% AER average return per annum thereafter2
    • High returns generated by three pronged strategy - Property renovation, house price rise, rental income
    • Direct management of properties for greater control and asset security

    Rent to Buy Property Investing combines the stability and security of investing in city properties with the combined benefits of our ethical renting policy, which provides first time buyers the chance to get their foot on the property ladder.

    Of course this is not a completely selfless move for investors, as offering a rent to buy option to tenants provides investors with a lot more support and security than they would normally receive with standard tenanted properties. In addition to the support and other tax breaks given, tenants are in partnership with investors. So investors are leaving their properties not with random come and go tenants but with long term partners that are also invested in the property and its upkeep.


    As with all of our property investments, our property buying team are very selective, only purchasing properties that can increase greatly in value with just minor low cost improvements. Also focusing on buying properties in areas that are set to have a healthy price increase in the coming years and with a low chance of any major price dips.

    Properties are fully owned by investors with an average 70% mortgage on any property. City FX keeps a safe buffer zone between the mortgage and the current house prices to ensure any dip in price does not push properties in to negative equity. This also ensures we can negotiate the best value mortgage rates to maximise on investors returns.

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    How Rent to Buy Works

    As tenants pay their monthly rent they slowly acquire a small percentage of the property year on year. When they have acquired ownership of a high enough percentage that they can then obtain a mortgage, they are allowed to purchase the property at the price agreed with City FX Investment at that particular time.

    Tenants benefit in two ways. Depending on the amount of rent that they choose to pay they will acquire a set percentage of the property ownership each year. This is normally 1-2% of the property. The percentage of the property acquired is based on their initial deposit and the monthly payment amount they have opted for, so even without any equity increase they will slowly acquire the property. In addition to this, they will also gain a percentage of any equity increase in the property value. The longer they are in the property the higher the percentage of the equity increase they will be entitled to.

    City FX Investment ensures that during this slow and generous acquisition of the property, investors still generate a healthy return on their investment.

    To receive all of these benefits and to make rent to buy attractive to investors, rent to buy tenants are made responsible for the property in many ways. Maintenance, improvements, mortgage payments and any negative equity. Investors are also responsible for these but rent to buy tenants take on their share of these as well. Tenants get the benefits of owning a percentage of the property but also have to invest in their own way and are committed to the property, even in the case of the property price dropping or difficulties with the property. This removes some of the costs investors can face with rental properties and in the case of severe house price dips, ensures the property has committed tenants that will benefit from riding out dips in the housing market.

    Security and Selling

    As with a standard mortgage, rent to buy tenants must maintain regular monthly payments to retain their percentage ownership of the property, if tenants fall too far behind they face the prospect of losing their entire stake in the property. Unlike standard rental tenants, there is a lot more to lose if they fall behind, so major arrears are less likely to occur with our rent to buy properties.

    The turnaround target on our rent to buy properties is for the tenant to purchase the property in 4-6 years of taking the property on. However, if properties can be sold to other buyers at a healthy return for both the investors and the tenants, then this option is available. As sometimes purchasing may not be a viable option for tenants or they may wish to change location.

    All of our investment properties are ring fenced from City FX Investment and our property management company, to protect investors. A floating charge is assigned to all investors, based on their level of investment. So any problems with the investment, management or properties then investors are given control over all property assets. These are unlikely events but are put in place for investors peace of mind, as a prudent investor insurance.

    Transparent Investing™

    City FX transparent investing policy works across all of our investments. Investors will know which properties they are invested in, the income and price fluctuation on their properties and even an idea of the type of tenants using their properties.

    City FX Investment believes transparent investing is essential to keep investors aware of how their funds are being used and how their investments are fairing, not only at the end of their investment term but during the course of their investment.

    For more information on our Rent to Buy Investments or to invest, open a free online account. Alternatively contact us if you have any questions about our investments.

    Important Information

    1 Returns on investments are estimates based on previous performance. Returns will fluctuate depending on the overall property fund. Higher returns could be achieved as the returns stated are based on conservative estimates. Lower returns could also occur in the event of house price dips or property income difficulties.

    2 Third year returns are lower as based on a shorter term investment, after the initial two year minimum investment period extended investments require only a 90 day withdrawal notice. Investors wanting to resubmit their investment for a minimum two year period will again receive the higher return rate.

    3 Minimum investment term is 2 years for our property investments. Investors will have the option to withdraw their investment after this term or continue on their investment with just a 90 day notice of withdrawal required. Investments can also be resubmitted for a further 2 year investment at the higher returns rate.


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