Here's To a Better Future. Presenting:
We are seeking help to kick start Nextgen Homes Limted, a property development business with a twist!
For those who wish to skip the description and go straight into the competition, please check the Terms and Conditions at the bottom of this page before entering.
Our goal is to help first time home buyers onto the property ladder. As a standard service we will be gifting upto 5% deposit when they purchase one of our homes.
We all know someone who would love to own their home but are stuck or struggling to save for their deposit, if they can afford to save one at all. Our difference in business compared to other developers, is that we will be integrating something quite special into our principals and the way our business runs, no gimmicks.
We will be a sustainable property developer, closely examining the market and where it is leading us - by watching over other business's large scale developments, monitoring local demand and cross referencing with the rental market to see which buyers we can target for our service.
who are we?
Rafe, the Managing Director, has a passion for helping others, strangers and family, and maybe those who don't fully appreciate it. A friendly, professional and humble character, he will be the face of the company, meeting and greeting our potential buyers and establishing good rapport with them. Rafe's past experience has predominantly been focused in Customer Services for over 10 years, building up a solid foundation with members of the public. This business was initially his idea, with a drive to succeed and develop the business into a well known brand and to set a new precedent in the way developers work.
Kurt, acting as the company's joint Shareholder, is a business driven individual and somewhat knowledgeable of the housing market, having started a couple of successful businesses previously, including an estate agency which is now in its 3rd year of business and still growing. This has lead to valuable contacts within the housing market and construction industry.
Together, they will be bringing a new lease of life and healthy competition to the housing market by developing homes not entirely for profit.
reasoning, motives and ethics - our story
The idea behind Nextgen Homes originally started as the formation of a not-for-profit organisation, a charity. The idea was simple: construct and sell homes for what they cost to build which included labour, materials, land and additional services like designing and legal fees. For example, we would construct, and sell, 2 semi detached units for £60,000 each as opposed to the market value of at least £120,000 each (approximately). However when we researched tax law, any beneficiary to these homes, like the buyer, would automatically have to pay Capital Gains Tax due to paying less than the market value for the property. As a charity, its standard practice that the business cannot make a profit - the funds must be used for the charity’s intent and maintaining the charity itself. Furthermore, in order to sell these homes, surveys must be carried out under regulations for obtaining a mortgage. This valuation would be based on market value when reporting back to mortgage provider, making the process far more complicated. At this stage, our plan had hit a wall.
After our being disappointed on our findings, we reasessed our goals and motives: Nextgen Homes LTD was born. We would stick to our original intention of financially helping our buyers. Though it would be a legitimate process where we would “gift” home buyers deposits for them.
As a developer running this Limited company, making profit then became a possibility, but was not our first motive. Helping people in our own way was and is our ambition. After further discussion we agreed we could then use our profits to benefit the buyer, maintaining our charitable cause and then the remaining “profit” would be reinvested to grow the business thus helping more buyers along the way.
To add further incentive for the buyer, our homes will be registered with the Help to Buy Scheme (see section headed "your homes"). This application process allows Nextgen Homes to determine who can benefit the most from our gift deposits, preventing buyers who would otherwise use our service in an unethical manner - preventing potential first time buyers access to our service. We would love to help everyone, but due to Nextgen Homes starting out on a lower budget (crowdfunding), our target market will lean to first time buyers (though we will endeavour to expand current services to include a greater customer-demographic).
We appreciate that some of you may be sceptical toward this idea, but we want to reassure you, so please feel free to make contact with us (contact details located at the bottom of our pitch).
what about our aims?
Does a paid deposit to move into your new home seem too good to be true? Surely not. Property development can be a highly profitable business, but also not without risk. After all, most developers want to hang on to as much profit as they can. With a trend in rising house prices and a strong demand for new homes ongoing, we know its time to make our vision a reality.
Take a little peek at a video that briefly sums up what our vision is: Nextgen Homes Promo
So this is what our business will be about:
After deciding the location we will build in and what type of homes to build, we will apply to the Help To Buy Scheme. There will be a thorough application process, but this should not be an issue. We anticipate our homes to be valued starting at approx £120,000 upto a maximum of £250,000 (depending on location, local authority, planning and other market conditions at the time).
Here's the interesting part: Once our homes are ready for sale, we will be offering our deposit service to all buyers, but in particular first time home buyers. Working with Help To Buy Scheme Midlands, we are permitted to offer a maximum gift deposit of 5%. Whether a buyer has no deposit to put down, or haven't saved enough doesn't matter. We will gift the amount, with no repayments necessary. For the buyers this means they can benefit from less stress and pressure from increasing deposit costs, but more obvious, providing a solution for many who would otherwise not have the opportunity to own their home.
Nextgen Homes Ltd will work closely with Help To Buy to ensure all our homes are made available through the scheme, thus, buyers will be able to take advantage of both our deposit scheme and the Help To Buy Scheme.
Furthermore, we realise there are incentives in the property industry already. What sets us apart from other developers and builders, is that our deposit scheme will form part of the foundation of our business, relieving some of the financial hardship first time buyers deal with. This is why we need your help.
Nextgen Homes' journey is about to have a leading and lasting impression in the world of property development. Our in-house deposit scheme will help prospective buyers from all walks of life, from the low wage customers to those with a little extra dosh. Our homes will be built and sold with with full ownership in mind while the business starts, but as we grow, we will offer other services, that many of you may have heard of such as "Shared Ownership" and "Part Buy, Part Rent". Again, our deposit service will still have full benefit to buyers when this occurs. So long as buyers can obtain a mortgage, they are in the right place!
If any homes are built and haven't been placed under the Help To Buy Scheme, we will increase our gift up to 10% deposit or pay the stamp duty when purchasing, which will potentially save thousands of £'s.
homes for the present and beyond
So why now? Why would you donate to us? What kind of homes? Who will benefit?
While you may have a lot of questions, we want to be as transparent as possible, not just in this article, but how we operate as a business in the future. This section will explain a little more about the business and how we will operate.
With Brexit looming around the corner, industry experts have explained that buyers are not losing confidence in purchasing homes. In fact, foreign nationals are investing in property in the UK. Though this does not represent our target market, it shows that the industry is still growing.
New homes will still need building whatever the circumstances after the UK's Brexit date and with our motives to financially help our buyers, it goes without saying that our business may take a little longer to grow. Yes, business wise, we need to gain capital in order for this to work, but let us remind you, we was initially starting out as a charity. A charity with the aim of building homes and selling them at the cost of development. With our charity model being near impossible to achieve due to legislation forbidding the sale of homes at a value far less than surveyor's recommendations; and also due to Capital Gains Tax, we realised that we would have to adapt our idea. The motive remains the same - to help others. Here's to Nextgen Homes LTD, funded by the people, for the people!
Those who benefit the most from this is no doubt the first time buyers. In the future as we grow, we have plans to help those with a little more to spend also. We will remain loyal to building homes for those on a lower budget and won't compromise on anything but our own personal financial benefit, but we do have plans to grow. We would like to expand into other areas of the country in years to come, the East Midlands acting as our "Hub".
If you take a look at the image of the UK below, it shows the scale of development in each area of the country. Coincidentally, the East Midlands area, where Nextgen Homes is based, shows that growth was the least overall in the UK in 2016 to 2017, mirrored by the South West region. Local Authorities in the Midlands, including Amber Valley, Erewash and Broxtowe, have started relaxing planning permissions in order to promote growth and meet demand sought after new homes. Combine this with fears that The Help To Buy Scheme could be coming to an end and growth could slump further. Please continue below.
In early September 2018, PropertyWire reported that housing market experts have begun to assume that the Help to Buy Scheme maybe having an adverse effect on house prices - increasing prices, therefore rendering the Help To Buy Scheme useless. We're not stepping into the politics here, but should the worse happen and the scheme does come to an end in 2021 (a suggested deadline for the scheme) or in the future, Nextgen Homes will already be equipped to step up, at least on a smaller scale, to help those buyers who otherwise would not have had the chance to benefit from the scheme.
At the end of the day one thing we realise is those who are living in rented accommodation are often capable of affording monthly mortgage repayments. Currently, many private tenants cannot afford to save for their deposit due to increasing living costs and with many wishing they had a home to call their own, we will be able to provide that opportunity. To help provide a better quality of life.
Moving on slightly, the organisation, HNBC, has released statistics based on the number of homes both registered (to be developed) and the results for the amount of homes having been completed. They are updated quarterly throughout the year, but as the diagram suggests, outside of London, the East Midlands area has suffered less growth relative to other regions of the UK (as also shown above).
Amber Valley, Broxtowe and Erewash's housing demands have not been met. Overall the East Midlands has been hit hard in recent years, with the shortage of homes assisting in a steep rise in the price of homes and mortgages. Housing.org.uk reported that the extent of this means the average worker on approx £25,000 are not able to obtain an 80% mortgage. Click here to see the full article. Nextgen Homes is going to seize this opportunity and help towards the demand of new homes needed in this area. Combined with our deposit scheme, we will be able to help toward settling the demand for new homes and assist in the increased urgency for potential new home owners. We will be focusing our efforts within the Nottinghamshire and Derbyshire areas, again, conveniently close to Nextgen Homes home base, in Ilkeston.
*Mapped images sourced from HNBC. You can find the full online document here to download in PDF format.
Based on the information above, mixed with our motives to help people, leads us onto why need your help in funding this. Nextgen Homes' priority is to assist in helping toward settling the financial burdens of ever increasing waiting times to get on the property ladder. Prices increasing, means having to save a deposit for longer and an increased amount. This double edged sword means more and more people may never get the chance to own their home, meaning they are at the mercy of an ever increasing costly rental market. This has futher implications: causing stress and poverty and generally lowering the quality of life. The benefits of being able to own your home certainly outweigh the reasons not too.
with your help
With your pledge and support for this cause, we have calculated we can begin helping at least 2 potential home owners in the first 9 months from the start of construction. In year 2, we aim to double this to 4 new home buyers. By year 5 we could be helping as many as 10 different families, couples, and single professionals and we won't stop there. We do not wish to line our pockets apart from our own essential living costs, meaning that if you can help us achieve our target funds, minus Crowdfunder's commission, there will be enough kick start the business and then to keep reinvesting and growing the business, helping more and more people along the way. We all know someone who would very much like to own their home, or maybe you wish to benefit from this yourself? If not, we appreciate you reading this far.
research, inspiring our future developments
What kind of homes will we be developing? Our attention to the market draws us to buyers where there is greatest demand within the market; Homes for couples and the working families take current lime light around the Midlands. We carried out our own market research and surveys, asking consumers and potential buyers what they "need" in a home and what they "desire". We asked for further for further information such as age, size of families, location etc which then gives us an indication of who our buyers will be, and what they expect to see in the final product. Results from our surveys, predominantly from our local authority areas (Nottinghamshire and Derbyshire) together with statistics from the general housing market community, will define where we build and what we develop.
We also asked how many of the participants in our research surveys were saving for a deposit, or wanted to save for one. The result below shows that we could potentially help around 2 out of 3 new home buyers. That is a massive slice of the market. Now we would expect the result to change if this was extrapolated to the entire UK, but it does represent the need for our cause. There was a fourth answer on the survey as "Not Applicable", but none of participants answered with this:
Its worth noting, The Government are against developers using the Help to Buy scheme who's homes are sold on Leasehold land and they want this practice to stop! Amidst growing concerns over increasing ground rents and how views of these lease terms are "medieval" Nextgen Homes will be selling all developments on Freehold terms - buyers will own the entire plot, from their land boundary, to the roof they're under.
The homes we design and sell will be within the Nottinghamshire and Derbyshire area of the East Midlands. Your homes will be appealing to the eye, encouraging you to "want" a home, not just "make do". 2 and 3 bedroom properties will be our target builds, but as Nextgen Homes grows, we would like to cater to larger families too. Standards of homes built will be no less than what our own family would expect to see: Modern, bright, clean and homely.
And maybe not forgetting a place for the car to sit aswell. Both semi-detached and detached homes will be available, subject to land and planning. We aim to make your homes as comfortable, practical and modern as possible. We are also in discussion with major energy providers to supply our new build developments with solar panels and energy storage banks (batteries) to help toward reducing the long term carbon footprint.
We have high standards, so every home we build will be under scrutiny and question to make sure we deliver our promise. Not too mention the site inspectors who will have final say.
We are going to be working very closely with local architects with a view to forming a partnership. We will also endeavour to work as close as possible with the Help To Buy Scheme Midlands and also NHBC who will provide the 10 year structural warranty on the properties. The contractors to the build will also be NHBC registered, and all properties will be surveyed and inspected regularly to maintain high construction standards. Furthermore, we will also be working with a selected solicitor who specialise in property developments and can deal with the property sales. We would offer them to our potential buyers if they desire, but are entitled to find their own advisors/solicitors.
You can find links to these organisation bodies below:
timescale and costings
Nextgen Homes will budget accordingly once we receive funds. This will include land, planning, labour, materials, fixtures, finishes, warranty, insurance and legal fees. As they are new build homes, a warranty will be issued by NHBC, using their experts to sign off the properties ready for moving in. Our contractors will be registered with NHBC and will be used to construct the properties in order to comply with building regulations and warranty procedures. A further 10% of overall budget per home will be set aside to allow for contingencies should there be delays or problems, or anything that Buildmark Cover does not insure. Once the property is complete and signed off, funds remaining will used to get our first time buyers onto the ladder. Current market conditions remain positive and having our in-house deposit scheme, we expect our homes will sell quickly.
From buying the land through to final sign-off inspections, we expect a minimum term of 6 months and no loner than 9 months. This will allow us to provide a safe and good quality home to our buyers. However, the application process for the Help to Buy Scheme could take as much 12 weeks to complete, but construction can start as soon as NHBC grant development warranties.
For anyone pledging for the higher rewards, we expect to fulfil your reward within approximately 12 months of the project being funded.
a bit extra
In a country where the rental market has been increasing year on year, and potential home buyers finding it harder to own their home, we want to be a leader for change. We will be taking all measures to ensure that we check our customers to ensure a fair system, where we secure deposits with the right customer. To protect both the customer and the business, we will be a GDPR compliant company and have money laundering security procedures in place once customers make their application to buy.
Once we have achieved the funding goal, your donation will help the business develop its first homes, based in the midlands in and around Derbyshire and Nottinghamshire. We will set about securing our first plot of land, obtain the planning permission and structural warranties before developments begin. Once complete we hope to have our first buyers in and we will reinvest all profits back into the business so we can grow and help continue the process. We already have a contact page on Facebook and Twitter and an information only website is currently being constructed (lookout for www.nextgenhomes.co.uk)
We have been working on this project for many months now and we are ready to put our plan into action, believing that transparency is a must, no catches, no hidden deals.
As a final gesture of thanks, we will have a commemorative plaque created listing the names of all our crowdfunders, which will be displayed in our future marketing suite, and social media (which you can opt out of).
food for thought
This is somewhat a controversial plan... especially for current market leaders. However, if you have children, would you like to see them own their own home? Would you like someone to help out with the deposit than your own savings? Why not recommend Nextgen Homes?
goodbye for now
Without your help, we will be looking at a lengthy delay before we can fund this ourselves. Therefore, we will be inviting our biggest donators to an opening ceremony, where the first of our homes will be ribbon cut and under the watchful eye of social media (we also hope to hit the news as we integrate our deposit scheme into the general practice of the business).
Thank you so much for reading and for any support you can give us.
Yours most sincerely and happily,
The Nextgen Homes team.
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*Nextgen Homes Limited will become incorporated on 1st October 2018 whether or not we can reach the Crowdfunding targets.
Competition Terms and Conditions:
1) The competition is promoted by Nextgen Homes Limited
2) The competition is subject to meeting the minimum target level of £300,000 for the car valued at £10,000 and £400,000 target for the £20,000 car
3) The competition is open to all UK residents who are aged 18 years or over, except employees of Nextgen Homes Limited and their affiliated companies, their families and agencies, and may not be registered with Crowdfunder.co.uk to participate. You may pledge as a "guest" but you must ensure you submit contact details should you be chosen as a winner. This does not affect your right to pledge anonymously as your contact details will only be seen by the project leader
4) Crowdfunder.co.uk employees may participate
5) The winner will be chosen at random by Nextgen Homes Limited and then contacted no later than one week after the close of the project. The winner will be contacted by e-mail so participants must include this in their contact details
6) Winners contact details will be removed from our database once the car has been collected. All other entry details will removed as necessary unless in receipt of other pledge rewards. No other contact will be made
7) Entries are limited by your chosen pledge. See the rewards section for pledges and rewards details. The prize is non-negotiable, non-transferable and non-refundable. No cash alternative is available
8) Entries will not be acknowledged by Nextgen Homes Limited. Nextgen Homes will not be liable for any failure of receipt of entries
Exemptions, Exclusions and Conditions:
9) Nextgen Homes Limited reserve the right to remove this competition without notice. Crowdfunder.co.uk may wish, at any time, and without prior notice, advise or enforce Nextgen Homes Limited to remove any part of the funding process, including the competition to Win A Car. In the event either parties do so, the project will be closed in its entirety, entries removed and pledges cancelled; their will be no further obligation for any donators
10) The winner must be able to proof their identity with photographic identification upon collection of the vehicle. In the event valid identification is not provided, Nextgen Homes Limited reserves the right to amend or cancel the winners competition entry and announce a new winner
11) The prize is limited to a car equal to or greater than than the sum of £10,000 including VAT or £20,000 at the time of initial purchase after the competition closing, respective of meeting the funding targets
12) The dealer/manufacturer assumes all responsibility for any warranty/guarantee they provide; Nextgen Homes Limited will not accept liability, nor will they be involved in any dispute with the dealer or manufacturer that may arise
13) Collection date of the vehicle may be modified at the discretion of the main car dealer; if this occurs, the winner will be contacted immediately by the dealer or by Nextgen Homes Limited to advise of further instructions for collection
14) It is the winner’s responsibility to prove to the car dealership that they can insure and tax the vehicle
15) Nextgen Homes Limited will not be liable for the vehicle once signed and collected by the winner. All ownership rights will be waived by Nextgen Homes Limited and assumed ownership will be that of the winner
16.1) The prize is a: Ford KA+ Studio, 5 Door, 1.2l Ti-VCT (70PS), Manual 5 Speed, Smoke Grey, Lodha In Dark Shadow (Colour), Charcoal Black (trim), OTR price £11,590, on achieving the target fund of £300,000
- or -
16.2) The prize is a: Mazda MX-5 SE-L Nav, 2 Door Convertible, 2.0l (160PS) SKYACTIV-G Petrol, Manual 6 Speed, Jet Black Mica, 17" Gunmetal Alloy Wheels, Black Cloth Red Stitching Trim, OTR price £22,545, on achieving the higher target of £400,000
16.3) Retail prices correct at time of project going live
17) Nextgen Homes Limited reserves the right to change the specification of the car, but will endeavour to ensure the car promoted is the one given away
18) By pledging on the project and its rewards with competition entry, participants agree to:
18.1) the terms and conditions of the prize draw
18.2) being contacted by Nextgen Homes Limited or the car dealership/manufacturer in regards to collecting the prize
18.3) accept that Nextgen Homes will collect data for the purposes of contacting the winner and we will not contact participants for any other reason than to send or receive rewards associated with their pledge. Data collected will be removed and destroyed upon participants receipt of their reward and/or prize
Happy Pledging and Thanks For Your Support