Posts Tagged ‘crowdfunding’

Universal Credit Trial – unmitigated disaster

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A Universal Credit trial in Torfaen South Wales has resulted in an increase in arrears from £20,000 to £140,000 in just seven months from July to January.

CEO of Brofn Afon Housing, Duncan Forbes said, “That was a group of people who had a good track record of payment and pretty low level of arrears, thrust into a position where they are now in significant arrears. At the same time we’ve increased our staff levels by about double what we would normally put into income recovery. We’ve been very successful up to now in getting the number of evictions right down, but we can see that inevitably steadily rising. The difficulty for us is that if there’s no long-term solution to paying that rent we can’t sustain business as a landlord.”

Despite the obvious disaster Universal Credit will be for both tenants and landlords, the Welfare reform minister Lord Freud (I thought the Freuds were known for being intelligent!) is still supporting Universal Credit and said: “Millions of people will be better off on the new benefit.”  To which we have to agree – yes millions of benefit claimants who keep the money and don’t pay Landlords their rent will certainly be better off.

Should we as landlords of DSS tenants be worried? Well it is a concern. But, taking into account the possibility that the government will not come to its senses in time and cancel the whole misguided notion before the Autumn, we have a plan in place to ensure we still get paid.  Many landlords will not have a plan and will either suffer financially or simply stop renting to DSS tenants.

Ethical Crowdfunding Success as ‘The House Crowd’ Raises £1 Million

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We’re delighted to share the news that we’ve now surpassed £1 million of crowdfunded property investment in The House Crowd.

With Britain facing an affordable housing crisis comparable to that of the early post-war years, we are pleased to be doing our bit as an innovative property investment company, alongside our investors, to support Communities Minister Don Foster’s campaign to revitalise the estimated 1 million empty homes in Britain.

So far, forgotten communities in parts of Oldham, Farnworth and Little Hulton have already benefited from our efforts to revive distressed properties, where quality housing has been provided at fair prices to those most in need.

Our ‘caring capitalism ethos is something which sets us apart from other property investment companies and we are pleased to see property investors join our ethical crowdfunding revolution, to the tune of £1 million. Onwards and upwards!

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

FSA gives green light to online crowdfunding platform

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The Financial Services Authority (FSA) has for the first time approved a crowdfunding website facilitating direct investment in small businesses. It means investors using the website, Crowdcube, will now be able to claim compensation from the Financial Services Compensation Scheme and access the Financial Ombudsman Service if they have a complaint.

The opinion here at The House Crowd is that it’s good to see a regulator starting to approve dynamic forms of financing like crowdfunding. As demonstrated by our unique business model, crowdfunding can provide great returns for all, in a safe, transparent way.

Currently, as The House Crowd doesn’t fall under the definition of either a CIS (Collective Investment Schemes) or OEIC (Open Ended Investment Companies), we do not require the FSA’s authorisation to operate.  However, even though we are not FSA regulated, we do everything we can to ensure that all our dealings are as transparent as possible and that investors are made fully aware of the risks as well as the rewards in any investment. We also ensure your money is protected as far as possible – you never pay money directly to us, all investment monies are paid to a solicitor’s client account and held there until the property is purchased and your shares are issued.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

Cash “bung” for communities building new homes

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Planning Minister, Nick Boles, has signalled an intention to direct up to £650,000 to councils that allow the development of new homes on their unused land. The money will be provided to local authorities by house builders once they receive planning permission.

Mr Boles hopes this innovative proposal might help tackle the UK’s growing housing shortage crisis.

As part of the scheme, local people could stand to receive up to 25 per cent of the money for the improvement and provision of local infrastructure, if plans are supported via a local referendum.

Whilst it’s good to see the Government coming up with new ways to stimulate housing development, our concern with this scheme is that the imposition of an increased tax on house builders might drive up the price of land, thus affecting the provision of less expensive, affordable homes.

At The House Crowd, we think it vital that with an apparent renewed focus on new builds, the Communities Minister’s pledge to ensure that 5,000 empty homes be refurbished to tackle the national housing shortage are not put on the backburner.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

Property investing still perceived as a winner in 2013

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So how do people perceive the future of property investing in these interesting times?

The two most important factors for people investing in property in 2013, according to a recent survey, are a stable income and a boost to insufficient pension provision.

“Landlord Today” also reported that confidence in the UK market is robust, with ¾ of property investors stating they intend to buy additional buy to let properties over the next 12 months, as low savings rates and returns on the stock market means property investment compares very favourably with income from other investments.

Many involved in property investing  are taking a long-term view, with 65% stating that rental income for retirement is their main motivation, followed by long-term capital growth (27%).  Just 8% of respondents cited short-term capital growth as their reason for investing. 68% of people surveyed claimed they are achieving gross rental yields of at least 6%, but only 20% achieving 9% yields or higher.

Only 5% felt that property prices have further to fall.  We suspect they have all been spending too much time reading The Daily Mail.

Tips for a novice property investor

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Taking your first steps into property investment can be an incredibly daunting process, which is why we’ve outlined some key property investor tips for novices to follow.

The obligatory legal particulars can seem convoluted, the amount of time it takes for a return puts off many and the risk of losing your life savings is frightening. However, if done properly with the right preparation, getting into property investment can be a relatively straightforward and exciting adventure.

Here are The House Crowd’s key property investor tips to help you make your first forays into property investment a success:

-          It is important to understand that property investment is a business, not a hobby. You need to be prepared for long hours of research, negotiation and, sometimes, disappointment. Going it alone can provide fantastic returns for some, but only those with a committed business mentality.

-          Property investment is truly a long-term investment and accepting that there may be times when your outlay exceeds your investment income is part and parcel of the process. Be prepared for unforeseen circumstances, such as property repairs, which can affect the time it takes to see decent returns.

-          Beginning your adventure with a small project is advisable. It’s easy to get carried away if you fall in love with a property (remember, you won’t be living there, this is business!) and bite off more than you can chew without knowing if you’re cut out for property investment. There will be plenty of opportunities for tackling big projects once you have gained some experience – though you, like many, may learn that smaller projects can actually offer better rewards!

Remember, with The House Crowd you get a very good return on your money and need do nothing at all. You have no mortgage payments, no bills, no void periods, no tenant problems, no maintenance or repair issues to worry about. And, of course, you can spread your money over as many different properties as you like rather than putting all of your eggs in one basket!

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

The perils of investing in repossessed property

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Our MD, Frazer Fearnhead has just had an article published in the Daily Mail/ This is Money on the Pitfalls Of Buying Repossessed Property.

It’s never plain sailing when you are trying to buy investment properties at rock bottom prices, as some property investors have already have found out to their considerable cost.

But if you are a prospective purchaser of bmv properties such as repossessions, then you will undoubtedly be  interested in the sort of nonsense that goes on behind the scenes.

It’s, nevertheless, something The House Crowd will continue to take in its stride  so we can deliver high yielding investment properties for all our property investors.

Have a read through the article:

The Pitfalls of Buying Repossessed Property

Kickstarter kicks off in the UK

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Earlier in the year, we blogged about the creative project funding platform, Kickstarter, announcing plans to launch UK operations in Q4 of 2012. Now, we’re delighted to report Kickstarter has kept to its word, launched successfully on our shores and begun offering our savvy entrepreneurs, artists and other creative groups a platform on which to pitch for much-needed investment via crowdfunding.

The success of Kickstarter across the pond cannot be underestimated – since its launch on April 28, 2009, over 350,000,000USD has been pledged by more than 2.5 million people, funding more than 300,000 bright ideas.

In our opinion, the arrival of Kickstarter on our shores should be welcomed with open arms. It has the potential to coax the very best of our budding entrepreneurs out of the woodwork and provide a necessary shake-up of common perceptions about the importance of crowdfunding, to our already shell-shocked economy. Furthermore, Kickstarter allows everyday people with great ideas, who are perhaps lacking the self-assurance to commit wholly to their creative idea, to essentially “ask the crowd” to gauge the value of their start-up business or creative visions, and hopefully, obtain that all-important vote of confidence.

Now, more than ever, we need to look to fair and transparent methods of investing together to help give a much needed jumpstart to our stalled economy, where investment funds are becoming as hard to find as a credible political party. Here at The House Crowd, we’re confident Kickstarter is an ideal platform from which to do this.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

£300m Money Pot to Tackle Plethora of Empty Homes

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We were extremely pleased by Communities Minister Don Foster’s announcement earlier in the week, pledging to ensure that some 5,000 empty homes could be refurbished and brought back onto the market as the government battles to end the national housing shortage.

Local councils, housing associations and a range of other organisations including community and voluntary groups are being invited to bid for money from a £300million pot of funds, in order to tackle the number of empty and run down houses in the Greater Manchester area, which could help rejuvenate often blighted local areas.

With a nationwide council house waiting list of over four million people, we think this is a great idea, as it will help tackle the plethora of empty run down properties to be found throughout the UK. Furthermore, it will hopefully help alleviate the vicious cycle where one run down home can bring an area down, which can then spiral into whole communities being affected.

Recent government figures show the number of empty homes is already decreasing, having dropped from 300,000 in 2009 to 259,000 in 2012.

At The House Crowd, we purchase BMV properties which are often unliveable in when we acquire them, and regenerate them into attractive homes before renting them out, providing affordable housing in areas that are often desperately short of housing.  And all of which still delivers an excellent return on investment for our investors.  So we’re providing a community service with the help of our investors, whilst still providing them with a better return on their investment than they would find with any bank.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit www.thehousecrowd.com/invest-in-property/).

Rejuvenating Manchester’s High Streets

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In August of this year, we blogged about ‘Town Team pilots’ being rolled-out in the wake of Mary Portas’ High Street Review and the value of such entrepreneurial approaches to town centre rejuvenation. You can read the blog post here.

Following on from this, it has recently been announced that Manchester Council is to inject more than £300,000 to breathe new life into Greater Manchester’s high streets – specifically, Levenshulme and Cheetham Hill precincts, after they both missed out on cash from the Government’s Portas Pilot programme.

Both of the aforementioned areas did receive £10,000 consolation funding from the Government after bids for greater funding failed earlier this year. However, Manchester Council’s decision to provide far greater funding to promote these areas, drive shopper footfall and help bring fledgling local businesses on to the high street is significant and likely to achieve long-term results.

A council spokesperson has already talked-up the benefits of tackling aesthetically displeasing unfilled premises in the funded areas, however, here at The House Crowd, we believe the true value of the newly announced funding will be to attract further private development, transport investment and leisure facilities – all of which are central to increasing property value and key ingredients for building self-sustaining inner-city communities.

The House Crowd is a brand new concept in property investment which allows people to invest small amounts via crowdfunding (for more information on the process, visit http://www.thehousecrowd.com/how-it-works/). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, visit http://www.thehousecrowd.com/about/our-manifesto/). If you’ve read enough and want to invest now, visit http://www.thehousecrowd.com/invest-in-property/).