General Election: The 2017 Housing Manifesto Of The 3 Major Parties

General Election: The 2017 Housing Manifesto Of The 3 Major Parties

So, the General Election is looming. On 8th June, we face the decision of whether to carry on along the path of ‘strong and stable leadership’ promised by the Tories, or gamble on the prospect of the unknown – a Labour candidate who looks nothing like the party face we’ve been used to over the last two decades. Then there’s the Lib Dems, UKIP, or the Greens: of which there is much less to say.

But for investors in The House Crowd, the principal focus will be the housing policy offered by each of the major political parties. So, just to save you trawling through the party manifestos, we’ve done the dirty work for you. Here’s what you need to know about the 2017 housing manifesto for the Conservatives, Labour, and Lib Dems. Just an FYI – at time of writing, the Greens and UKIP are still yet to publish their manifestos.

Conservative Party 2017 Housing Manifesto 

The ‘Homes For All’ section of the Tory manifesto begins with a comment that states the blinking obvious: ‘We have not built enough homes in this country for generations, and buying or renting a home has become increasingly unaffordable’. So how do they plan to fix it?

The key, they state, is to build enough homes to meet demand. Again, pretty obvious. They identify that the effect of this would be to slow the rise in housing costs, allowing more ‘ordinary, working families’ to buy a home and also to bring down the cost of renting. Crucially, for investors, this will ensure that more private capital is invested in more productive investment, thus hastening economic growth in a secure way for the future.

The Tory manifesto pledges the delivery of one million homes by the end of 2020, with half a million more by 2022. They promise to deliver on the reforms from their Housing White Paper, freeing up more land for new builds in the ‘right places’, encouraging modern methods of construction, and by giving councils the power to intervene where developers do not act on their planning permissions. The Tories will also diversify who builds homes in the UK.

The plan also includes the building of better homes, supporting ‘high-quality, high-density’ mansion blocks, mews houses and terraced streets. And all this whilst retaining the strong protections that currently exist over designated Green Belt, National Parks, and Areas of Outstanding National Beauty. Thus, the government must build 160,000 houses on its own land, and rebalancing housing growth across the country – not limiting it to the south-east.

Housing for older people is also a priority, so the Tories plan to help housing associations increase their specialist housing stock.

The manifesto identifies councils as being to blame for the failure to build sustainable, integrated communities, fingering them as the ‘worst offenders’ and accusing them of building ‘for political gain rather than for social purpose’. The Tories plan to enter into new Council Housing Deal with ambitious, pro-development local authorities to assist them with building more social housing. ‘We will work with them,’ they say. ‘To improve their capability and capacity to develop more good homes, as well as providing them with significant low-cost capital funding’. As a result, they plan to build new, fixed-term social houses, which will ‘be sold privately after ten to fifteen years with an automatic Right to Buy for tenants’, the proceeds of which will be recycled into further homes. Compulsory Purchase Orders will be reformed, reducing cost and difficulty for councils to use, making it easier to determine sites’ true market value.

Finally, the Conservative 2017 housing manifesto pledges to work with private and public sector house builders to capture the increase in land value created when they build to reinvest in local infrastructure, essential services and further housing, making it more certain that public sector landowners benefit from the increase in land value expected from urban regeneration and development.

Labour Party 2017 Housing Manifesto

Labour have titled the 2017 Housing manifesto section of their election manifesto ‘Secure Homes for All’. It also begins by outlining the housing crisis, and pointing the finger at the Tories for failing to fix the housing crisis in the last seven years, stating that ‘Since 2010, housebuilding has fallen to its lowest level since the 1920s… rents have risen faster than incomes, there are almost 200,000 fewer homeowners, and new affordable housebuilding is at a 24-year low’.

Labour’s solution? Investing in building over a million new homes – 100,000 council and housing association homes a year by the end of the next Parliament.

Their plan for a new Department of Housing is ostensibly to ‘ensure housing is about homes for the many, not investment opportunities for the few’. We wonder whether they know about the democratising power of property crowdfunding in this area… and whether they plan to invest in the innovative finance model for real estate at all.

Whilst the Tories accuse local councils of building ‘for political gain rather than for social purpose’, Labour plans to give councils new powers to build homes. They plan to begin the biggest council building program for at least 30 years, ditching the Tories’ ban on long-term council tenancies so that council tenants can have a ‘secure tenancy in a home built to high standards’. The ‘right-to-buy’ policy would be suspended in order to protect affordable housing for local people, unless councils can prove they have a plan to replace homes sold like-for-like.

To avoid urban sprawl, Labour promises to start work on a new generation of ‘New Towns’ to build the homes needed, prioritising building on brownfield sites and – like the Tories – protecting Green Belt land.

The priority, of course, for Labour, is to build new council funds through their National Transformation Fund, which – they say – will ensure a ‘vibrant construction sector with a skilled workforce and rights at work’.

Along with all those council houses, Labour will also build thousands of low-cost homes specifically reserved for first-time buyers, giving local people buying their first home ‘first dibs’ on new homes built in their area. Labour councils across the country, they say, have already been building an average of nearly 1,000 more new homes than Conservative councils.

Just as the Tories do, Labour pledges to ‘not only build more, [but to] build better’. More homes will be insulated, and new modern standards for building ‘zero carbon homes’ will be implemented. Equally, the party plans to consult on new rules on minimum space standards, and introduce new minimum standards to ensure properties are ‘fit for human habitation’ and ‘empowering tenants to take action if their rented homes are substandard’. Like the Tories, Labour also identifies the need for older people’s housing, ‘ensuring that local plans’ address this need. There’s also their predictable promise to ‘reverse the cruel decision’ to abolish housing benefit for 18-21 year olds, a controversial move by the Tories that has had many up in arms.

Controls on rent rises, more secure tenancies, landlord licensing and new consumer rights for renters are all promised. They also promise an inflation cap on rent rises, and to make three-year tenancies the norm. They equally state that they’ll legislate to ban letting agent fees for tenants – which seems a slightly odd statement considering this is already in the pipeline.

Liberal Democrat Party 2017 Housing Manifesto

In the same vein as the two major political parties, the Lib Dems, too, begin their 2017 Housing manifesto section with the (not-so) news that the ‘housing crisis in Britain has become an emergency’. Their figures for increasing the rate of housebuilding are to double the current level to 300,000 new homes a year.

Rather kindly, the Lib Dems have broken their housing pledge down into bullet points, which makes it rather easier to share verbatim:

We will:

  • Directly build homes to fill the gap left by the market, to reach our housebuilding target of 300,000 homes a year, through a government commissioning programme to build homes for sale and rent. We will ensure that half a million affordable, energy-efficient homes are built by the end of the parliament.
  • Create at least 10 new garden cities in England, providing tens of thousands of high-quality, zero-carbon homes, with gardens and shared green space, jobs, schools and public transport.
  • Set up a new government-backed British Housing and Infrastructure Development Bank with a remit including providing long-term capital for major new settlements and helping attract finance for major housebuilding projects.
  • End the Voluntary Right to Buy pilots that sell off housing association homes and the associated high value asset levy.
  • Lift the borrowing cap on local authorities and increase the borrowing capacity of housing associations so that they can build council and social housing.
  • Scrap exemptions on smaller housing development schemes from their obligation to provide affordable homes, and strengthen the hand of local government to prevent large developers reneging on their commitments.
  • Require local plans to take into account at least 15 years of future housing need – focusing on long-term development and community needs.
  • Create a community right of appeal in cases where planning decisions go against the approved local plan.
  • Enable local authorities to: – Levy up to 200% council tax on second homes and ‘buy to leave empty’ investments from overseas. – Enforce housebuilding on unwanted public sector land. – Penalise excessive land-banking when builders with planning permission have failed to build after three years. – End the Right to Buy if they choose.
  • Help people who cannot afford a deposit by introducing a new Rent to Own model where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.
  • Improve renting by banning lettings fees for tenants, capping upfront deposits and increasing minimum standards in rented homes.
  • Help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time 62 Support Families and Communities 6 renters under 30.
  • Give British buyers a fair chance by stopping developers advertising homes abroad before they have been advertised in the UK.
  • Give tenants first refusal to buy the home they are renting from a landlord who decides to sell during the tenancy at the market rate according to an independent valuation.
  • Promote longer tenancies of three years or more with an inflation-linked annual rent increase built in, to give tenants security and limit rent hikes.
  • Improve protections against rogue landlords through mandatory licensing and allow access for tenants to the database of rogue landlords and property agents.
  • End the scandal of rough sleeping by increasing support for homelessness prevention and adequately funding age-appropriate emergency accommodation and supported housing, while ensuring that all local authorities have at least one provider of the Housing First model of provision for long-term, entrenched homeless people.

So that’s the top three parties covered. Clearly, there’s plenty to consider; lots of contrasts, but equally lots of crossover between opposing parties. Who’s getting your vote on 8th June? Actually, don’t answer that – no one wants to deal with another war in the Comments section on Facebook… there’s too many of those out there already.

What Makes The House Crowd Different?

What Makes The House Crowd Different?

Property crowdfunding is a fast growing industry within the investment and savings sector. Inspired by our model and our success as the first property crowdfunding platform in the world, many imitators have emerged to challenge the crown.

Yet, despite the increasingly competitive industry, we continue to be the best crowdfunding platform of all (officially!) So what’s the secret to our success?

Most people will tell you that the way to differentiate yourself within your market is simply to be different. But any old idiot can be different – you’ve got to back up your uniqueness with solid foundations.

We stand out from the crowd because we are expert at what we do and we do it with complete transparency. Investors appreciate the low minimum invest level, investment security is high, and the opportunities for diversification within the asset class are excellent.

Besides all that, we still have to provide a compelling reason for people to get behind us. And that is precisely what The House Crowd has done.

The First And Still The Best

We have always defined ourselves as original thought-leaders. Because we were the first property crowdfunding platform, it goes without saying that we know a good deal of everything there is to know about the industry – after all, we invented it. But, moreover, we are at the forefront when it comes to anticipating, identifying, and reacting to changing circumstances to ensure we meet investors’ needs.

Frazer: The Face of The House Crowd

Besides our obvious expertise, there is also a recognisable face at the forefront of The House Crowd as a brand. That face, of course, is Frazer. It is Frazer’s vision that gave birth to the property crowdfunding model, and his story is one that is as human as it is inspirational.

From his Manchester rave culture adolescence, to his career as a music lawyer, through to a range of entrepreneurial projects, and the eventual dawning of property crowdfunding, Frazer has lived a varied and vibrant life.

The hard work, skills, and knowledge it took him to get The House Crowd off the ground, legally permissible, and into the public eye are a testament to the power of labour and perseverance. To know that there is a man who has a lifelong passion for entrepreneurial spirit is an appealing and assuring concept for people searching for the right hands into which to trust their investment.

Hard work and skills may have been what got The House Crowd off the ground, but part of Frazer’s continued popularity is his honest and sometimes forthright way of communicating. He is a character who has always questioned the status quo, famously leaving his glamorous career in law after being told that ‘love is not a word lawyers use’ by his boss. Never afraid to swim against the tide, it’s both Frazer’s boldness and his intuition for what works that breed confidence from others.

By equal measure, he owns up to his investment mistakes; he shares and clearly articulates how he endeavours not to make the same mistake again. These are rare qualities in most leaders.

Swimming Against The Tide

It is Frazer’s questioning of the status quo that has fed the originality of The House Crowd’s manifesto.

The company has always been about democratising property investment, opening the doors to people from all walks of life. Regardless of how much or how little somebody has to invest, our policy has always been the same: we treat everyone with the same openness, attention, and we care for their money as if it were our own.

Our honesty and transparency differentiate us from the faceless competition, who despite adopting our innovative model, still slump through the dark ages when it comes to their attitude to investors. To us, our investors are all equal, and are welcomed in as though we were a family (if that’s not too trite an analogy).

These are the reasons we are different, and the reasons why we continue to lead the way in the property crowdfunding space. As we continue to grow and evolve our model with the changing shape of property in this era of uncertainty, we are adamant that we will never let go of these factors which make us so unique and special. We hope you will join us on the journey.

Manchester Property Market Growth at 12 Year High

Manchester Property Market Growth at 12 Year High

Latest figures released by the Hometrack Index show Manchester property market growth to have hit a 12 year high in 2016. This gives the city the second highest rate of price growth in the UK, next to Bristol.

A rise of 8.9% year-on-year for Manchester was reported, with experts predicting that the city will overtake Bristol for pole position by the end of the first quarter of 2017. The figures for Manchester exceed the average year-on-year increase across the UK, which came in at 7.7%.

Strong market fundamentals, particularly a significant supply/demand imbalance in Manchester, keep pressure on prices high. Despite the same supply/demand imbalance in the capital however, London dropped to seventh place for price growth in 2016.

Strong Market Fundamentals Keep Manchester Property Market Growth Thriving

Manchester’s vibrant rental market is also thriving, with demand continuing to grow. This, of course, makes it a dream opportunity for buy-to-let investors. Indeed, the city was recently named the UK’s buy-to-let hotspot by HSBC. This is all despite the massive challenges faced by buy-to-let investors following the government’s attacks on landlords.

The growing popularity of property crowdfunding is helping prospective buy-to-let investors push back against these attacks, providing a welcome haven for those keen to benefit from a steady stream of secured rental income.

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Rental growth here is 13 times that of London, driven by the growing population of young renters, flocking to the city for studying and career opportunities. Manchester boasts 60% more 25-29 year olds than the UK average, placing it within the country’s fastest growing demand for short term lets.

Massive Investment In Manchester Fuelling Property Market Growth

Success is also compounded by the government’s whopping £7 billion investment in Manchester. Determination to develop a world-class infrastructure in the city will attract further billions of worldwide investment over the coming years, which is already evident as overseas investors hone in on the investment opportunities offered here.  

Over 100,000 students across Manchester’s four main higher education institutions give it the highest student population in Europe.

70,000 of these are not in student halls of residences, meaning they are renting privately within the city. This makes it prime territory for PBSA (Purpose Built Student Accommodation) investment.

Across the board, from the UK-leading purchase market, to the thriving private rental and student markets, right through to commercial investments, Manchester is winning. As growth in the city’s property market continues at an unprecedented pace, with huge investment fuelling projected growth for years to come, we remain confident in the continued promise that our city offers investors.

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An Introduction to Investing Through Property Crowdfunding

An Introduction to Investing Through Property Crowdfunding

Traditionally, only those with access to large amounts of capital have been able to invest in the lucrative world of property. Managing a portfolio is normally time-consuming, business, which becomes increasingly more burdensome as the investor’s portfolio becomes larger.

However, in the last few years, a new method of property investment has emerged which has effectively democratised the entire investment process, allowing more people than ever to benefit from the financial gains that property investment can offer.

Property crowdfunding started to take off in 2012, and is now worth billions of dollars a year worldwide. The value of the industry currently doubles every two months, and is set to be worth $250bn by 2020.

The growth of the property crowdfunding industry has been catalysed, in part, by the relaxation of regulations over the last few years. The Government has identified the industry as being hugely beneficial to the economy, and has also begun investing in crowdfunding itself. Institutional investment is also coming into play at an increasing rate, and high net worth investors, attracted by the simplicity of the process, and the returns available, are also investing through property crowdfunding.

But why is investing in property crowdfunding proving so popular?

Offering the chance to build a diverse portfolio without all the legwork involved in traditional property investment models, and with the opportunity for significant gains, it’s no surprise that investing in property crowdfunding has grown exponentially in the last few years.

What’s more, as interest rates on savings continue to crawl along the seabed, and returns from both rental and sales continue to rise, more and more people are waking up to crowdfunding as a simple way to grow their money.

How Does It Work?

Property crowdfunding encompasses both equity investments and debt based investment (also known as peer to peer secured lending).

The concept itself is relatively simple.

Equity investments involve a group of people pooling their cash to buy a property as shareholders through a ‘Special Purpose Vehicle’ (SPV). The SPV is a limited company, set up solely for the purchase of that property. The SPV handles all the work, fees and maintenance of the property, whilst the shareholders receive their proportion of the rental yields, and/or share of capital gains when the property is sold.

People can invest even very small sums in buying shares in the property. On some platforms, this is as low as £50, but the typical minimum is between £500 and £1000. One of the advantages of property crowdfunding is that you can spread your available capital over a number of different properties across the crowdfunding platform, to mitigate risk.

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Getting started is a very quick and easy process. You simply register on your chosen website – it is an FCA requirement that only registered and accredited investors may participate, and, once registered, you simply select the properties you wish to invest in.

Debt based investments again involve pooling resources, in this instance, to make micro loans through the platform to a third party borrower. The loan as a whole is secured against the borrower’s property and the platform appoints an agent to act on behalf of lenders and take any necessary enforcement action. These types of investment are usually short term (up to 12 months, and pay a fixed rate of interest with no capital growth).

Where Did It Start?

The House Crowd is the longest-established property crowdfunding platform. It began trading in 2012 and offers both debt and equity investments. Since then, other companies have followed in their footsteps, such as Property Moose in 2013, and Property Partner and Crowdlords in 2014. The industry continues to expand, with several new platforms emerging each year.

Is It Regulated?

Property crowdfunding firms are all regulated by the Financial Conduct Authority (FCA), which ensures that platforms are managed properly, and that risks are made completely clear to investors. As with any investment, there is risk to capital – but it’s worth comparing this risk against other investment classes, and seeing how property crowdfunding stacks up.

Before investing through property crowdfunding platforms, it is very important to do your research. Every regulated platform should have the FCA authorisation number clearly visible on their website. If you can’t find these details, you should steer clear as they are not operating legally.

Is It The Right Choice For Me?

As with any investment, you need to take into account your personal circumstances to establish whether it is the right one for you.

You can find out more about establishing whether property crowdfunding is the right investment for you here.

Ask yourself what you wish to achieve. Investors with a lot of professional experience and access to bank funding, may find the model less appealing than novices.

If, on the other hand, you don’t have a deposit available, or aren’t able to get a mortgage, then investing through property crowdfunding could be an ideal way for you to access this asset class. And, given the government’s recent attacks on landlords, which has severely undermined the profitability and viability of buy-to-let investing for individual investors, it may well be that crowdfunding remains the only sensible option available for most.

Risk

The same principles that apply to other forms of property investment also apply to crowdfunding. You should be aware that capital growth profits are speculative, and investing in properties that produce a healthy cash flow is the more sensible approach.

One of the major risks associated with cash flow positive properties is that of damage or non-payment of rent. As such, you should always factor this in as an eventuality that may affect your yields. As mentioned above, however, if you have a well-diversified portfolio, with your capital spread over several properties, any losses due to one bad tenant will be more bearable than if you had all your eggs in one basket.

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At the end of the day, it all comes down to your risk tolerance. You do lose a large amount of leverage by investing through property crowdfunding, and you will only benefit proportionately from the property’s capital growth but, at the same time, having no borrowing means significantly less risk as there are no mortgage payments and no danger of the property being repossessed (as shareholders own it outright).

If making crowdfunded debt-based investment, (aka peer to peer lending) you need to know what would happen if the borrower defaults and does not repay the loan. You should ask questions about how your investment would be protected, what happens in the event of a default – how easy is it to take control of the secured property? – and how much equity is available to enable you to recover your money should the worst happen. Unless there is sufficient equity in the property, you could risk losing some or all of your money.

If you opt for debt-based investments, your investment will be secured by a legal charge. A critical matter to consider is at what LTV the loan is made. If, for example, a loan is made at ‘75% LTV’, it means that you will be at risk of losing some of your capital if the borrower defaults, the property has to be seized, and is sold for less than 75% of its current valuation.

Debt investments are generally considered to be lower risk than equity investments, as lenders are always paid out before shareholders, however, you do not get the potential upside of capital growth.

What About If I Want Out of My Investment?

If you need a liquid asset, then property is not the best choice.

Investing through property crowdfunding facilitates liquidity to some degree as it may be easier to sell shares in a property than the whole property. However, there is never any guarantee that you will be able to find a buyer, and, if you cannot do so, you will have to wait until the property is sold.

Some platforms will help you to find a buyer after the expiry of a minimum term, but you should check the small print before you invest. If you’re looking for a short term investment, P2P secured lending may be the better option.

To Conclude

We hope that this has offered you some valuable insight into getting started investing through property crowdfunding. Of course, you should know everything about the ins and outs of any investment before you part with your money, and we are fully committed to helping you know all you need to.

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If you have any questions, you can always get in touch with us and we will be very happy to fill you in.

Traditional Property Investment versus Property Crowdfunding

Traditional Property Investment Versus Property Crowdfunding

Property crowdfunding and traditional property investment have some significant differences. The main difference is to be found in the nature of managing the investment.

Whilst those who favour traditional property investment value the sense of control associated with full ownership of a property, there are significant costs and time commitments involved in maintaining their investment, Property crowdfunding on the other hand is to a very large extent a passive investment with thord parties managing everything on your behalf. So if you do not have the time, nor the resources, to keep up with the demands of building a property portfolio it can be a very attractive option.

There are also additional financial implications to consider, and we will go into these in this article.

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Responsibility

Property crowdfunding eliminates many of the responsibilities involved with traditional property investment. An investor wishing to create a properly diversified portfolio of properties will invest large sums on a smaller range of properties, and will be responsible for everything from biological disruptions (by infestation of plant or animal life), to managing tenants and weathering void periods on a rental property. With a crowdfunded property investment, none of these aspects apply, as they are taken care of by a third party.

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Furthermore, the due diligence, prequalification and vetting of an investment property are all handled by the SPV (Special Purpose Vehicle), the company behind the purchased property.

If, on the other hand, you have the skills and experience necessary to avoid mistakes and handle the investment on your own, then traditional property investment will probably be a lucrative way to grow your money. That being said, you will need substantially more money in the first place in order to make your first investment purchase.

Fees and Costs

There’s also the matter of fees. A traditional property investor will have to contend with solicitors’ fees, mortgage broker fees, loan arrangement fees, and surveyor charges, for example. With property crowdfunding, these fees are included within the overall cost required to sell the property, as listed on the crowdfunding platform’s website.

It’s also worth learning from the mistakes many property investors made ahead of the 2008 property crash. Many found that their mortgage lenders had allowed them to leverage at a rate that exceeded their affordability. The banks then revalued people’s assets, leading to a swathe of repossessions, subsequent catastrophic loss, and bankruptcies.

Checking the small print and getting legal advice when investing with the traditional property investment model is wise. Then again, none of this applies to property crowdfunding.

This is, of course, a worst-case scenario for traditional property investors. It is, nonetheless, one that still bears some weight. If mortgage rates rise, those who have invested with a mortgage may find themselves out of pocket. Buy-to-let investors should take the obvious step of making sure that their monthly rental income covers, at the very least, their mortgage repayments by at least 130% and should factor in potential mortgage rate rises.

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Buy-to-let landlords have also been hit by changes in Government legislation that have removed the ability for these landlords to deduct interest from profits from their tax liability, which can prove a further obstacle to ensuring the profitability of their investment. Again, there are no such risks with property crowdfunding, which usually buys properties for cash with no or minimal borrowing.

Challenges and Rewards

Whilst there are challenges involved with investing in property in the traditional manner, there are also a great many rewards. First of all, rather than earning a percentage of returns based on your initial investment sum (as with crowdfunding), once all outgoings (such as loans and legal fees, for example) have been taken into account, an outright property investor could earn a potentially much higher return.

There is, however, a downside to this. Where a traditional investor leverages a lot of cash, the risks to the investment are increased dramatically. Should the investment value fall, they could stand to lose a very significant amount. Whilst risk is, of course, not negated with property crowdfunding, no mortgage is necessary.

Selling Your Investment

Another benefit of traditional property investment is the control over when to sell the investment. If you are able to sell at a profit, and as quickly as you require, then the power is in your hands. Property crowdfunding, on the other hand, usually requires a majority vote from all shareholders if you wish to sell before the end of the investment term.

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To Conclude

Property investment, whether traditional or crowdfunded, has long been a profitable investment choice. Whilst both forms of investment carry risk, there are significant pros and cons on both sides, which potential investors need to factor into their investment decision.

Weighing up which type of property investment is right for your particular needs is key to ensuring that you are confident in where to place your money. At the end of the day, however, whichever path to property investment you choose, there is potential for great returns.

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.

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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.

 

How You Can Invest in Property with Little Savings

Investing in property make great sense – we all know that; we see the success stories, see rental prices rise and property values soar.

Put money into property and there’s a very good chance you’ll enjoy healthy returns (although don’t be too cocky, a little on the pitfalls in a bit).

Continue reading “How You Can Invest in Property with Little Savings”

Prospects for Property Investors After Bank of England Clampdown on Buy to Lets

Some recent changes are already hitting landlords hard, others will soon. Here we look at the available options in what for many buy to let investors are troubling times.

Continue reading “Prospects for Property Investors After Bank of England Clampdown on Buy to Lets”

What Tax Benefits Are Available From Investing In Property?

Recent announcements relating to changes in Stamp Duty and how tax is calculated on rental properties have been anything but encouraging for landlords and anyone thinking of investing in property.

However, what tax breaks exist for property owners. Continue reading “What Tax Benefits Are Available From Investing In Property?”