Crowd Funding
- Goups of individuals contributing from £1000 upwards in order to acccess the property market. The average contribution is under £4000.
- This results in a lowish capital yield of say 4-5-6%.
- Rent yields are as low as 5%
- Not for home occupiers this is for Buy to let.
- Popular in Manchester UK
- Avoids some hurdles of going through lenders.
- Gearing is more complex with selling somewhat more so.
- Aimed at benefit recipient tenants (if not investors) the margins for profit are lower than in other letting genres.
- At least it is a start on the housing market but not much of one.
- Some investors could lose moneyu in a downmarket.
- This is micro ownership rather than major investing.
- Each owner owns a share.
- The property is managed by a suitable letting agent capable of keeping the property let.
Published: 24 September 2015 Last Updated: 17 November 2021