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Crowd funding property - minimum investment £50


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  • Founder & Administrator

I posted a while ago a property crowd funding site called thehousecrowd.com their minimum investment was £1000, so still quite a bit of an investment required. But I have just recently found out about another company called property partner, who require a minimum investment of only £50. There site is here: https://propertypartner.co

Check our their FAQ's: https://propertypartner.co/howitworks/faqs#/crowdfunding

Could be a good investment for some people here who wish to diversify and have a little bit invested in property.

My posts are my personal opinions, they do not constitute advice or financial advice.

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Thanks for the heads up Chris. I was looking to invest once or twice a year with house crowd, am currently trying to save a grand before September, when I'm aiming to do so. But I'll give these guys a look over.

There website looks pretty nice, and they have some big names on the board. From my quick read through the FAQ's it sounds good.

I believe the house crowd target towards students, so the returns are higher there. But it's not as easy as property partner to cash out and you loose any potential increase in property value growth if you sell before 5 years with house crowd. Whereas with property partner you can sell your shares at any time on their platform. Have a check of their site, I think it's a good alternative from what I have read so far.

My posts are my personal opinions, they do not constitute advice or financial advice.

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Just had a quick look at it. You are right about the quick exit etc, but estimated returns are lower and the properties seem to be of a higher price / value / standard. I like the HC model of low property price against decent rent return. Need to have a longer look, but I may dabble in small amounts with both. Interesting that's for sure

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Very interesting and a much easier entry for people with small funds spare. All property's in London though, My only reserve would be BTL Rental is being advertised and shouted from the rooftops about how great it is, everyone and there dog is either talking or knows about it..Seems like a classic bubble? 

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Just some additional details in respect of HouseCrowd and with whom I have invested with for a fair while

 

Over the two to three years of their existence they have tried various models, but the one that they appear to have settled upon is a simple rental model and with the longer term potential for capital growth. In summary the profit is split 75/25 between the shareholders and HC who operate as the management agent 

 

Housing stock is across all types. HMO, B2L as well as recently commercial/rental mix, and with the fixed terms currently being either three or five years. Portfolio is heavily biased towards the North West and which is the stamping ground of the co founder who along with his family have invested in the region for over 30 years. HC have developed a good relationship with estate agents, and are increasing picking up distressed properties which give an instant paper profit. I usually do a cross check with Zoopla etc and the prices quoted for one or other pitch does show a reduction against the norm 

 

They are conscious of their social obligations as management agents, and have worked with a number of housing associations who are happy to provide tenants for reputable landlords. This for me was a strong positive.

 

Investment is relatively high at a £1000 and with myself taking an approach of always investing the minimum in order to spread risk 

 

One final point. The co founder makes no bones about the mistakes that he made during the last property bubble, and from what he says the errors he made nearly took him to the wall. From my own dealings in investments I find that someone who has failed and learnt is a better bet than a concept and strategy that is untested.

 

If you are interested have a look at the web broadcasts that they have done and which are linked to the main page. Similarly if anyone wants to know any further details in respect of the mechanism of HC I am happy to help as I am a strong supporter of all P2P forms of lending inclusive of Crowdfunding and are happy to go out of my way to indirectly shaft the banks  :)

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  • 2 weeks later...

Thanks for bringing awareness to Property Partner, Chris.

 

Property crowdfunding platforms like Property Partner are very appealing to small investors like me. But before I decide to invest, I still need to do a lot of due diligence

 

So for those that don't know. property crowdfunding is a relatively new way of purchasing/investing in real estate. It involves a group of investors who pool their money together to buy a house or flat through a property crowdfunding platform like Property Partner, The House Crowd or Property Moose. The investors don't get a mortgage, instead they are issued shares in a special purpose vehicle (SPV) which is a UK Limited Company that has been specifically set up to own a particular piece of real estate.

 

Investors make money by receiving monthly rental income and when the investment real estate is sold in the future. However, it's important to note that there is no guarantee that the investment real estate will be tenanted or sold for above the amount that it was purchased for.

 

So just like with any other type of investment, there will always be risks, and opportunities for abuse.

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I do like the idea of crowd funding and have made a small investment with property partner. I'm probably gonna make a few small investments per year to spread risk and see how it goes. Yesterday's investment was funded within half an hr!!! As with any investment there's always gonna be a percentage of risk but I'm hoping by spreading monies over different assets classes ( property, cash, PMs, stocks and shares ) this should reduce losses. Or so the theorists say anyway

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Has anybody number crunched the fees to see by how much % the investment would need to outperform to compare with going it solo on a buy-to-let?

These two estimated figures are displayed next to all properties on propertypartner.co

Example;

5.74% Gross Rental Yield

3.21% Dividend Yield

I presume the dividend yield is the actual return you get after their fees etc.

My posts are my personal opinions, they do not constitute advice or financial advice.

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Yeah the dividend yield is wot u get back annually but you get it monthly. They charge a one off fee of 2% of your investment and then 12.5% of the gross rental. I didn't think that was too bad compared to the 25% house crowd charge. The 2% is a bit like the premium paid on initial investment in gold.

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 12.5% of the gross rental. I didn't think that was too bad compared to the 25% house crowd charge

 

HC is 25% of the profit not from the gross rental. Similarly the business models are different and thus top line data will not allow you to compare apples with apples

 

Current rental ROI for HC  SPVs  is tracking at around 8.5%  and with ROI I believe being more of a truer indication of how your money is working rather than using the gross yield metric and which is skewed due to the purchase overhead ( Legal fees, surveys, stamp duty, contingency, essential remedial work etc) not being included 

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I am now officially a property magnate with an investment property portfolio, (sounds posh).

 

I chucked in £50 into Property Partners as a tester, and now the proud owner of a 2 Bedroom flat in London, (well, 0.0168% of it)

 

First piece of property I've owned since 1993....

 

Next year Rodders.................;)  

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Just a heads up, Property Partners have put a new property up for funding. Looking for a crowdfunding figure of £260k, and already raised £160k since 1pm today.

 

I've chucked a fifty into the pot......... My property portfolio just keeps on rising   ;)  B)  

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£273.73 invested for me. I'll see how it goes. I wanted 1000 shares of the Plumstead property but I had to deposit to the whole pound so it seemed stupid to leave nearly a pound not invested. So I have a rather weird 1001 shares or 0.1001%

 

I'll see how it goes and then might invest some more. Silver is still dropping so I might have spent all my spare money soon though.

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@Pipers, I must admit, I was very wary until I realised the founder of Betfair was backing them. I have a lot of admiration for this guy, (OK so he upped the commission fees, ebayesque), but he took on a formidable foe in the bookies and wiped them out. Bookies now have to rely on the FOBT,s to make money as Betfair has cornered the market for savvy punters. If it is good enough for the Betfair guy, its good enough for me. I'm not chucking in my life savings, I'm aiming to put in £50 in all their new properties, probably a few thousand pounds or so a year, But I'm happier sticking cash in here than things like bitcoin, etc

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£273.73 invested for me. I'll see how it goes. I wanted 1000 shares of the Plumstead property but I had to deposit to the whole pound so it seemed stupid to leave nearly a pound not invested. So I have a rather weird 1001 shares or 0.1001%

 

I'll see how it goes and then might invest some more. Silver is still dropping so I might have spent all my spare money soon though.

 

The more the merrier!

 

Does anyone know if the money is taken straight out of your bank account when you pledge some money to a property, or does it only leave your account once the funding round is complete?

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The more the merrier!

 

Does anyone know if the money is taken straight out of your bank account when you pledge some money to a property, or does it only leave your account once the funding round is complete?

 

You have to fund your Property Partner account before being able to purchase shares in a property, so the money comes from your bank account straight away.(A bit like allocated PM companies like Bullion Vault) You then have an option to buy whatever shares in a house you want. Either in a new funding, in which it becomes a pledged amount, until the entire funds are raised, (10 day max), or buy shares off other properties that people are wishing to sell, which is instant.

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I know I don't have to remind you guys but i'm going to do it anyway:

 

Only invest what you can afford to lose.

 

You've got a lot to learn about people who inhabit precious metal forums........ We all think ALL of our investments are going to the MOON...........:)

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HT yes I know befair is a fantastic company, but why would anyone crowdfund property.

Maybe he couldn't get funds from the bank without some of his own chips on the table.

Or he has properties he wants to sell at top of the market and there are no buyers at them prices!

Or he will get kick backs!

It just reminds me of a hedge fund when they are struggling (in the sh-t) they have a 'wonderful opportunity' for the small investor to invest in this high performing fund.

Also we have the point of Landlord benefit that is going to be a big hot potato soon when tax credits are cut. Why should greedy landlords get benefits when hard working families get nothing if you get what I mean.

There will be 2000 and 5000 new homes in inner London in 18 months. May house sales were down. Estate agents stating cash buyers only in the market this means no property to sell or mortgage

my daughter who earns just over £30000 a year cannot buy a house, she is angry about it and so are tens of thousands of other young professional people.

I put that all together, and at best I reckon another 10 years before this country goes on a major homes buildings project because the baby boomers will be dieing off by then and the con lib lab will have to look elsewhere for votes.

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, but why would anyone crowdfund property......

 

My take on it is this.......No matter what people say or want, there are NEVER going to be enough homes / houses for everyone who wants them, and not everyone wants to buy. People on short term contracts, or people who have to move a lot for their work, do not want to buy properties, and will always prefer to rent. 

 

House prices in London have increased in May, not fallen. And many organisations including Oxford Economics are predicting house prices in London will double over the next 15 years.

 

Lets say, using your figures that 5,000 new homes are built in inner London, over the next two years, well between 2001 and 2011, inner London population increased by nearly 500,000 people, and forecasters are predicting another 500,000 to 1.000,000 more people moving to London in the next decade.

 

In order to house those people, you don't need to build 5,000 homes every few years, you need to build ten times that amount every year, if you want to see a surplus of housing, which will be the only thing that brings house prices down, (apart from another recession or interest rate rises).

 

As for tax credit cuts, these will not affect housing as much as you may think. Housing is always the first bill people have to pay, and if they have less money, is something they cannot do anything about, and will have to make cuts to other parts of their budgets. Maybe not having a £30 a month mobile phone, or a £70 sky package etc.

 

With regards to the properties PP are crowdfunding, they are buying ones that are already in the rental market, and are usually already rented out to professional couples, where the benefit system is not part of the equation.

 

I have no problem with this type of crowdfunding, after all, practically every financial expert recommends having property in your investment portfolio. Crowdfunding allows the little guy access to this sort of investment on an intimate scale.

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