1. Home Investment by Partnership in Rent by: Bill Powell bill@vts16.fastmail.net www.fairshares.co.uk/fair-housing Housing Portfolio North Warwickshire Borough Council. A ction for L and T axation & E conomic R eform Presented to : International Union for Land Value Tax & Free Trade 28 May, 2004.

2. UK Housing in CRISIS Elderly living longer Divorce Late marriage Prices up 38% in one year Low / Variable interest rates Fewest built since WW2 (1945) First time buyers can’t afford NEED = 100,000 more homes p.a.?

3. ‘Affordable’ Housing R = Rent at 40% discount MR = Shared Equity R = Rent at 40% discount M = Mortgage at 40% discount LAND discount = 40% ‘FREE Land from Developer BUILD discount = 40% from N Warks social rents! Now our homes decay! Discounts are ‘in perpetuity’. M = Open Market (mortgage)

4. ‘ HAVE’s vs. ‘HAVE NOT’s Engineer PhD Nurse Pension £

5. No Hope  LOW INCOME Nurses Firemen Teachers  IRREGULAR INCOME Waiters Fruit Pickers Musicians RENT POVERTY

6. Winners Small Mortgage BIG Mortgage FREE Housing BORROW World Cruise!

7. Purchase by Mortgage

8. Losers  WAGE LOSS Ill Health Job Loss  PARENTHOOD  DIVORCE  INCREASE % interest rate HOME REPOSSESSED

9. Partnership – Year 1

10. Partnership – Year 27

11. Purchase in Partnership

12. Mrs JONES  ‘Career Break’ Parent: for 5 Years Miss JONES  Student Nurse In training: RENTS Trained: BUYS 8 units p.a. Mr & Mrs JONES  Retire with 365 units. SELL: 16 units p.a. Flexibility

13. Affordability at 30% of Income MortgageRent & Own Rent + Maintainance Pay per month £ 590£ 464£ 305 ** Income Required £ 23,600£ 18,600£ 12,200 Down Payment £ 10,000 £ 305 Term 28 years28 Years- ** Includes £ 121 Maintenance per month

14. Purchase by Mortgage

15. Purchase in Partnership

16. Rental in Partnership

17. Social Units Rent Free ‘Never’ Sold Maintenance Charge ‘Affordable’ Rent = £ 231 per month Income Required = £9,263 p.a. Social Housing in Partnership

18. Savers Choice? % Building Society Indexed BOND FTSE ‘Property Investment Partnership’ Income4.52.03.12.2 GrowthNil2.94.05.3 Total4.54.97.17.5

19. Savers & Occupiers in Partnership

20. Partnership = True ‘Equity Share’ Limited Liability Partnership (LLP)  Easier entry than Mortgage  Very Flexible  Tracks inflation  Shared interest in value