Property Partner: Invest in Property Through Crowdfunding.
Property Partner is an online crowdfunding platform that allows people to invest in property. Put simply, the company collects funds from a range of people and invests them in actual property.
Authorized by the Financial Conduct Authority in the UK, Property Partner enables you to invest in residential properties and earn a monthly income from rent. Only 10.5% of rental income is taken to cover management, letting and advertising. The company makes investing easy because you don’t need to make huge commitments of money and time. After five years, you can withdraw capital returns by selling your investment, or exit at a market value. It is 0% to sell and all the proceeds belong to the investors.
The company’s properties are hand-picked by Britain’s top property experts. All properties are organized into different investment themes to enables investors to choose. When investors come across the property that they like, the company’s website allows them to invest at the click of a button. To invest in a single property, an investor needs to have at least £50. Then, the company does all the stressful bits; like solicitors, maintenance, and mortgages.
Property Partners advertises many properties online, typically a new property every fortnight. For each property, investors need to raise a set amount which includes the transactional costs and acquisition cost (stamp duty, surveyor’s e.tc.). If you are not ready to get a share in the property you liked during the first funding stage, Property Partner allows you to buy someone else’s share in the second market. Similarly, if you purchased a share in the property and you don’t want to hold it for five years, you can sell that share on the second market.
Each property is taken as its own company, referred to as a Single Purpose Vehicle (SPV). Therefore, each and every property has different shareholders. If you invest in a property, you will be issued with a share certificate for that property and you will receive dividend every year. The benefit of using a Single Purpose Vehicle is that if the company goes bankrupt for any reason, investors do not lose their money as their investment is in the actual physical house and separate from other properties that Property Partner has bought.
Property Partner is good for people who want to invest in property but lack the needed fund, investors interested in diversifying their assets to include property, and investors interested in splitting their investments over a number of properties.
Property Partner has several competitors. These competitors include other crowd funding platforms and property market funds. Today in the UK, there are four crowd funding property platforms. These are Property Crowd, Crowd2le and The House Crowd. Property market funds are investments or funds that can be bought from platforms such as Hargreaves Lansdown. Disadvantages of these funds are that they have a lot of hidden fees and investors do have control over their investments.
Property Partner is a good and easy way for you to get exposure to the property industry. As the platform grows, I believe it will only get better as more varied properties will be offered.