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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