The capital-intensive entry barrier to property investing is in many cases prohibitive. During the 1990’s leverage (buy to let mortgages) made it possible for smaller investors to gain from rental income, and in addition, the growth in the property’s value. As economies grew, house prices rose, and the yields tightened. Soon the rental market no longer delivered short term gains. The focus had shifted, with gains made only on property growth as mortgages grew equal to rental income.
Following the global credit crisis, rental incomes stagnated, and in many cases retracted. Many property investors were left with a mortgage to pay, and a rental income that failed to cover the payments.
Imagine if that had been different?
What if the investors were able to benefit from the rental income, and the growth in property value, without taking leverage, managing the properties or dealing with suppliers?
HCA takes a simplistic approach to property investing. Buying distressed assets (bank repossessions), at market value assets, and research-backed high yielding assets, HCA targets regular returns, along with medium- and long-term growth, passing those returns on to our shareholders.