Business Plan

Here you can find a model business plan for a house we looked at a while ago. It serves as an example for a house within our budget in central Edinburgh – It has 9 bedrooms with a total price tag of £450,000 – proving that we can provide affordable rents for properties that cost up to £50,000 per person moving in.

The spreadsheet we’re using was developed by Radical Routes and has been used by numerous housing cooperative to test and model different business plans. in our example we’ve predicted a £45,000 loan from Radical Routes with 6% interest and a £360,000 mortgage. We’ve modelled for £79.000 of loan stock investment from this campaign with interest rates varying from 0 – 3% and terms varying from 3 – 25 years. Depending on what loan stock we will raise, our cash flow will look slightly different from this example of course – but this model will make sure everything is financially feasible and sustainable.

Wherever the business plan uses estimates, they are conservative and “plan for the worst” – so that we will have room in our finances to deal with large unexpected expenses. For example on top of our yearly maintenance budget, there are extraordinary maintenance of £10,000 budgeted after 10 years. We have also calculated for possible ‘void’, ie in case there are empty rooms in case there is ever a gap between members moving in and out.

If you have any questions, please email us at redcurranthousingcoop@protonmail.com.

In case you missed the link at the top of the page, here it is again: 🙂

RCHC business plan