When we launched HOPE Housing, we set out to prove a simple idea: that investing in residential property to support essential workers could deliver both commercial financial returns and real social impact. Less than three years on, that idea is now a reality and it’s working.
Residential property is an asset class that people understand – to an extent. HOPE Housing has a four-pillar approach to delivering returns with impact through our co-investing model.
Bricks and mortar. Streets and suburbs. Property is tangible, familiar and essential. But what’s important to note is that many investors don’t always understand all the factors that come with owning property and drive growth. That’s where HOPE steps up and champions the investment process. We make it hassle free, with no upfront or ongoing property investment costs, vetting of properties and enabling scaled access for our investors. Our approach to delivering value has been built on four pillars:
1. Diversification
Our portfolio currently spans a wide range of locations across Greater Sydney – with homes acquired in the north, south, east and west – as well as delivering a mix of price points. This strategy reduces concentration risk; the kind of exposure that’s difficult to achieve when investing in property directly, and a clear strength of our co-investment model.
2. Smarter asset allocation
Diversification is important, but achieving alpha through a proven asset selection process is how we seek to maximise returns in our property portfolio. HOPE Housing uses its expertise in investment to identify the properties that will deliver market outperformance while having a social return. Our stringent process ensures that we select properties for co-investment that meet key parameters including limiting borrowing to reduce repayment stress for our essential worker cohort.
Our Investment Committee meets weekly, or as needed, to ensure that our buyers have the best chance for success in buying a dream property and have confidence that they have secured HOPE’s backing when it matters.
3. Scaled access to the residential market
HOPE makes it possible to invest in residential property at scale, without the burden of direct ownership. Our collaborative approach with essential workers and our partner bank sees approved buyers choose the property, while HOPE conducts thorough due diligence, sets the purchase price and manages the co-investment structure. Unlike traditional property investments with tenants, these are owner-occupiers with skin in the game and are motivated to care for and add value to their home. For investors, it’s a smarter, lower friction way to access residential property that delivers both performance and purpose.
4. Impact is where it all comes together
Our model helps essential workers, such as nurses, teachers and police officers buy homes closer to where they work. It’s improved their financial wellbeing and built their long-term security, with 79 per cent of homeowners experiencing greater peace of mind regarding finance. And we have worked tirelessly to be at the apex of quantifying the social return we are generating, up to 14.4% in 2024, with a total social value created to date of over $3.24 million since inception.
These four pillars of diversification, smart asset allocation, access and impact demonstrate a model that enables essential workers to create wealth. For investors, our co-investing shows that impact and performance can go hand in hand in residential property investment.
While the conversation around housing affordability and essential worker access continues, HOPE is busy making it happen.
