Land Investment - Burial Plots

INVESTING IN BURIAL PLOTS

Reliable Investments in uncertain times

BUILDING ON OUR SUCCESSES

In these uncertain times it’s hard to predict how markets will behave or what investments to choose.

At first, the idea of investing in burial plots might seem odd. But the demand for cemetery space in the UK is growing faster than supply. The result is that these small plots are increasing in value at dramatic rates while other property markets are standing still.

Our first UK investment project in burial space at Springhill Cemetery was a great success, drawing funding of £4 million from 700 investors for 4,000 plots. The project is due to be completed next month and has already received interest from many of the UK’s leading funeral insurance companies. Now, many of our original investors are already looking to invest in a new project, while many more new investors are waking up to the profit potential of such projects.

THE RIGHT TIME TO INVEST

Throughout history the price of burial space has only ever gone up in value and has never depreciated. In fact the growth of this asset is more reliable than any other asset class, which generally experience ups and downs due to economic factors. Even in the deepest recession the UK has ever seen the price of burial plots has continued to rise at an average of 10% per year.

The demand in the UK for cemetery space is growing at an alarming rate. What’s driving this trend is that the population in the UK is continuing to grow and is projected to reach 71.6 million by 2033. With land at a premium the population is effectively growing at a faster rate than new cemeteries and burial spaces can be made available.

Local councils are now increasing the price of burial space to help generate extra revenues and offset budget cuts from central government. This has resulted in increases in some areas of the UK of more than 25% in the last 12 months, with further increases planned for the future.

Demand for burial plots is expected to reach its highest in 2015 when the post war baby boomer generation will swell the ranks of the UK’s ageing population. The country’s multi-cultural society also includes many faiths where cremation is forbidden and burial is essential. This is why demand is outstripping supply and prices are going up.

Such is the focus on the rising cost of burial that leading insurance companies have invested heavily in the sector, offering funeral plan insurance to protect families against the rising costs. The graph above shows the forecasted cost of a funeral in 2015 and how dramatically it has increased over the last nine years.

INVESTMENT HIGHLIGHTS

• 40% ROI in 18-24 months
• Discounted from today’s rates
• Asset backed investment
• Clear and secure exit strategy
• Minimum investment of £3,700.

WHAT ARE YOU INVESTING IN?

The concept couldn’t be simpler. Investors purchase burial plots at a highly discounted rate in a cemetery that is currently under construction. The fund raised through this pre-sale provides the finance needed to complete the project. The plots are then sold back to the public at their full price giving investors an excellent return on their original investment.

As an investor you will receive a license agreement for the plots that you purchase. This protects the funds you’ve invested in the form of an asset from day one, eliminating any risk of the investment being lost.

THE MANAGEMENT COMPANY

A professional management company will handle the management and resale of plots, which is also responsible for the cemetery going forward.

The management company use a large network of undertakers, burial services and insurance companies to sell the plots on, and will market the cemetery with a firm focus on value and service, something that other sites in the area lack. The cemetery will be operated as a sister site to Springhill Cemetery, increasing the company’s coverage of the region and allowing it to use already established networks to sell plots once the project is completed in 12 months time.

Their team is already working with one of the largest burial insurance companies in the UK that have over 2,100 funeral directors in their network. They are also interested in purchasing bulk plots for their various funeral insurance policies across both sites once complete.

HOW MUCH CAN I INVEST AND HOW?

Plots are sold on a plot-by-plot basis with the minimum investment being two plots and there is no limit to the number of plots an investor can purchase. Each plot costs £1,850.

HOW SECURE ARE THE FUNDS I INVEST?

All funds will be held in a client account designated for this site, which is being managed by an independent accountant. The funds will be released in stages throughout the development as work progresses and all the works and costing will be audited to ensure fair practice.

This provides investors with the assurance that the development is being managed not only by the owner of the site, but also by a professional and experienced team that are in firm control of the project’s finances.

Investors will be appointed a license for ‘The Exclusive Right of Burial’ (ERB) on the plots that they have purchased. This forms the asset for the premium paid at this stage of investment. In the event of the land being sold to another party for any reason investors’ funds would be returned/retained as ‘saleable plots’ on the same basis as now. This is part of the legally binding contract as the ERB provides an invested interest in the cemetery for the designated plots that have been purchased.

WHAT TO DO NEXT

Once a reservation has been made we will require a deposit of £350 for each plot. After that has been received the plots will be placed on hold, the license agreement for those specific plots will be prepared and posted out to you.

Subject to the investor’s agreement the balance of the investment will then need to be paid and the license agreement returned to us. There is a small re-sale administration fee of £50 when the plot is sold to the public at the end of the investment and this covers the assignment of the ERB to the new owner and the administration work required to complete the transaction. The fee will be taken from the final payment. We have a full due diligence package that we encourage all investors to read through before making a final decision to invest. The documents in the pack contain proof of all the claims made in this investment guide and we will be more than happy to forward them to you upon request.

Our sales team is always on hand to discuss any further questions via email or over the phone. So feel free to get in touch.

Call us on 0845 230 1953
or Email at info@thomsonopi.com

More information on the investment >>

Register your interest and one of our knowledgeable team will be in touch to answer any questions you may have.

 
  • E: info@thomsonopi.com
  •  
  • P: 0845 230 1953
 

 

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