Property Crowdfunding: Is It The Right Investment For Me?

Property Crowdfunding: Is It The Right Investment For Me?

Property crowdfunding is becoming an ever-more popular way for people to invest in property, often with significantly less money than investing the traditional way. However, before you jump in, it’s a good idea to assess whether this is the right investment choice for you and your circumstances.

You can view our current property investment options here.

What Do You Want To Achieve?

The first question to ask yourself when considering property crowdfunding is what you wish to achieve from your investment.

If you are looking for an investment that requires less ongoing attention than owning a property for either development or rental, or you personally have more faith in the property market than the stock market, then it could be right for you. Nonetheless, plenty of investors in property welcome the sense of control that owning a property outright brings.

Though there is more additional financial outlay involved in the purchase and maintenance of a property owned this way, some people would rather be involved in all aspects of their investment than leave it to another party.

You can find out more by registering here.

What Experience in Property Investment Do You Have?

This follows on to the second question you need to ask. How experienced are you as a property investor?

If you’ve been a full-time, outright property investor for some time, and have access to the bank funding required to own and develop a property yourself, then property crowdfunding may be less appealing.

For those who know how the market works, and perhaps already have all the necessary contacts they need for the properties they invest in, benefitting from more of the profits (after paying off loans), as opposed to their share percentage, may be a more attractive investment option.

If none of this applies to you, then you could be the sort of person who would benefit from property crowdfunding, depending your circumstances.

What Are Your Circumstances?

For novice or less experienced investors, or those who have less access to bank funding, then property crowdfunding can offer an opportunity to invest in property that is unavailable through other means. For those who are interested in the prospect of weathering the risks of property investment, rather than earning scarcely any interest on their savings accounts, again, property crowdfunding may offer an alternative path.

Whenever you consider an investment, whichever form this may take, you need to ensure that you are covered in the event that the investment takes a turn for the worst. You should only ever invest what you can afford, so make sure your calculations are correct, and you won’t cause yourself financial harm if, for any reason, the value of your investment falls.

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To Conclude

As a final note, if you decide to invest in property crowdfunding, there is further investigation to be undertaken. You will need to choose the right crowdfunding platform. It is very important to do your research, and to only settle on the platform that meets all your needs and requirements. Make sure they are regulated by the FCA, that they have a good reputation, and that their customer service and complaints procedures meet your standards.

View our Property Investments

Entrusting your money with any investment vehicle is a decision that should never be made lightly. Ensuring that you are confident with all aspects of the investment is crucial, including the issue of risk. Property crowdfunding is no different to most other investment types, in that there is always a risk of loss. Knowing everything you can, and choosing the right investment for you, is the key to investing happily, smartly, and – hopefully – profitably.

 

Crowd Funded Property Investment: 10 Reasons Why It Is Right For You

For the part-time landlord, those who have a property or two to rent out but don’t see it as their full-time job, these are worrying times.

This group, accounting for roughly 70% of all landlords, faces a squeeze on profits and a ramping up of admin.

And with house prices rising and competition for quality properties high, just finding an investment opportunity within budget is a challenge in itself.

But out of difficult times spring new opportunities.

Crowd funded property investment is an increasingly popular choice. Here’s why it might be right for you

Continue reading “Crowd Funded Property Investment: 10 Reasons Why It Is Right For You”

The House Crowd shortlisted at National Business Awards 2014

National Business Awards logo

We are proud to announce The House Crowd is one of just 10 companies across the UK that has caught the attention of judges and has been shortlisted in the New Business of the Year Award category for the highly prestigious National Business Awards 2014!

It is recognition of us democratising the property market through crowdfunding – revolutionising how would-be investors, particularly those with smaller budgets can invest.

Judges were impressed with our disruptive and pioneering spirit, opening up a much-loved but notoriously difficult-to-enter market. The House Crowd’s strong customer service and general impact on the North West property market was also noted.

Our MD, Frazer Fearnhead said: As a start-up with big ambitions, it’s fantastic to be recognised on a national level. The House Crowd is part of a whole internet revolution that is giving power back to the people and creating a global community that can interact with each other, cut out big institutions and join forces for the common good. 67 % of our investors felt cut of from property investment before they found The House Crowd.

On a regional level, we are helping some of Greater Manchester’s “forgotten” communities to re-establish themselves. Breathing new life into old properties can have a dramatic effect on local communities as a whole, bringing in new people and ideas, and helping to create a new sense of pride in an area.

On a global level, we are trailblazers – creating a unique, innovative and ground-breaking concept, now emulated in several different countries.

The House Crowd has succeeded in injecting people power in to the once elitist UK property market and in turn, has brought property to the general population.

The winner will be revealed at the National Business Awards gala dinner held on 11 November in London.  Fingers crossed.

More VCs announce their investments in crowdfunding platforms

Crowdfunding for property is becoming the largest industry in terms of committed capital, according to an article on Crowdsourcing.org.

In the US, a recent investment by Canaan Partners of a whopping $9 million to Realty Mogul illustrates this clearly. Hrach Simonian who is a principal at Canaan and sits on Realty Mogul’s board told what he see are the key things VCs see when making property investments via crowdfunding:

  • Technology is part of the solution but it’s not the whole solution. You need to attract both sides of the marketplace, the sponsors and the investors.
  • Is the market that a startup is in big enough, and is the timing right?

 

Simonian acknowledged that the real estate market is worth around $11 trillion and that niche crowdfunding platforms (which is what we believe The House Crowd is) are more advantageous over general ones, and with so many VCs making investments in property via crowdfunding, it’s great news for the industry across the world.

FSA gives green light to online crowdfunding platform

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.http://thehousecrowd.com/thehousecrowd//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.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

Kickstarter kicks off in the UK

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.http://thehousecrowd.com/thehousecrowd//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.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/).

Crowdfunding hits Dubai as the worldwide phenomenon continues to spread

An article in Arabian Business on Sunday , had us enthralled as we read of further international growth of crowdfunding.  Click here to read the article.

According to the report, in the last month alone, two Dubai-based crowdfunding firms, Eureeca and Aflamnah, have launched. In the week following its launch, Eureeca received more than 65 enquiries from companies seeking investment and as many from investors looking to fund. So, what might this mean for the crowdfunding world? We’re think it’s safe to say that this is yet another example of the influence crowdfunding is having on a global scale.

Indeed, research firm Massolution forecasts that crowdfunding will raise $2bn worldwide this year, up from just $530m in 2009. In addition, it also expects the amount of crowdfunding platforms to increase to 530 by the end of the year, up from 452 in April.

As always, there are critics for the crowdfunding approach to raising capital but statistics rarely lie, and the figures being produced and the results being achieved internationally by crowdfunding is enough to convince us (why else would we have set up our own property investment company based on this model?).

Of course, the proof is in the pudding and as our first project heads towards its final phase, we will be reporting back on our own results and what was achieved by the sale of the UK’s first crowdfunded property purchase.

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.http://thehousecrowd.com/thehousecrowd//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.http://thehousecrowd.com/thehousecrowd//about/our-manifesto/). If you’ve read enough and want to invest now, visit www.http://thehousecrowd.com/thehousecrowd//invest-in-property/)

Could This Be The Largest Crowdfunded Charity Project In The World?

Could This Be The Largest Crowdfunded Charity Project In The World?

News is filtering through to The House Crowd HQ that a new viral philanthropy project, named “7 Million Acts of Love“, is aiming to become the world’s largest crowdfunded charity project. Every day we are hearing of exciting new initiatives which are utilising the crowdfunding model, and this one, in particular, excites us.

The brains behind the idea is Max Sidorov, the man who is probably best known for the IndieGoGo campaign he began that raised over £600,000 for a bullied bus monitor in America. Sidorov is aiming to create ‘the largest crowdfunded charity project in the world’, with a goal of raising $7million to support social good causes, with a particular focus on bullying initiatives.

Any example of crowdfunding in action is positive, however, we think this is a particularly fantastic idea as it really demonstrates how the concept can be used to make a difference within our communities and also further social causes – so well done to Max!

About Crowdfunding

Crowdfunding has become a huge phenomenon in recent years. It has built new inventions and businesses from the ground up by harnessing ‘people power’ to democratise how we grow businesses and the economy at large. It has also helped countless artists and creators from all walks to gain exposure for their work, and get a leg up with their career.

Most famously, however, the vehicle has been used for many a crowdfunded charity project, giving good causes a platform for exposure and to generate more donations than ever before.

Property crowdfunding is now taking the investment world by storm, following our brave debut onto the scene in 2012. We were the first (and continue to be the best) platform for property crowdfunding.

We are proud to offer better returns on investment than many other investment models, and allow people previously locked out of the property market to benefit from the lucrative world of property investment. What’s more, we’re helping bring much-needed new homes across the Greater Manchester area.

For more information on the process of getting involved with property crowdfunding, visit our Crowdfunding Process page.

We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments.

To find out more about getting great returns on investment with The House Crowd, start by getting to know us here.