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.

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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?”

How To Get Started Investing In Rental Property With Little Income And No Experience

Short of property investing experience and lacking in funds? Wondering if you can still invest in rental property and make a healthy profit?

Well, it’s not going to be easy, but you might have more options than you imagined.

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Affordable UK property investment despite rising house prices?

House prices are racing ahead once more, and not just in London as recent – figures show increases are now spreading across the country.

The latest reports from Halifax and Nationwide put annual house price inflation at 8.7% and 9.5%, RICS has said as shortage in supply of quality homes for sale is pushing prices up making it even harder to access UK property investment.

RICs forecasts the average UK house price will rise by 6% a year for the next 5 years, increasing by a total of 35% by 2020.

If you are looking for to get your foot on the housing ladder and take advantage of the market, prior to the further rise in houses prices but haven’t got the money for a large deposit then don’t miss out.

With the power of crowd funding, you can invest through The House Crowd with just £1000, click here to find out how.

UK property crowd funding future looks bright

As the UK economy recovers, interest in property development is also recuperating. Thankfully however, the opportunities are now open to all with the concept of property crowd funding becoming increasingly popular in the UK, started by The House Crowd in 2012.

It is flattering for us that there are now around 5 property crowd funding websites dealing with buy-to-let residential property, each offering a slightly different business model but based around the same concept that the crowd funding company acts as the central point between the owner, developer, landlord, letting agent and a number of individual investors wanting to buy property as part of the crowd.

The House Crowd, and some of the other UK online platforms are looking at commercial property for crowd funded investment, already being done in the US. Traditionally seen as more risky, obviously more expensive and therefore unattainable, crowd funding is making this accessible and offering higher returns.

A major reason for the rise in people following The House Crowd suit, is the Financial Conduct Authority’s (FCA) new regulatory rules on internet crowd funding which came into effect on 1 April 2014, in summary, ensuring that platforms must be fair and not misleading; risks should be highlighted; systems must be in place to separate the crowd’s money from the platform’s – all of which we do here at The House Crowd.

So, to be part of the bright future, why not invest with the first property crowd funding company – to find out how, click here.

Spring Time For Property Investors

It is worth bearing in mind that despite the property market being in the doldrums most of the last 6 years, property as with all other markets, goes in cycles.

If you think of the property investment cycle as seasons in the year, there is no doubt we have been in winter.  But the daffodils have now bloomed. We are definitely in springtime as far as property investment goes and it’s heating up quickly.

Pent up demand from first time buyers, low interest rates on savings and rekindled interest from investors mean more people are looking to buy property. And this is particularly true of the British property market.

Britain is one of the most established property markets in the world, especially in terms of property investment financing. It is very different in terms of property supply and demand from other countries such as USA, Cyprus, Bulgaria and Dubai where the property prices were inflated because of demand caused by the perceived profits to be made (greed) and the sudden availability of easier borrowing rather than actual demand for the living accommodation.

The UK market is very different.  I do not think there is any doubt more housing is required to house the UK population. No one disagrees that there is a massive shortfall in the amount of housing required to keep up with demand. Further, the rate at which new houses are being built falls far, far short of predicted requirements. The gap is widening every year.

It is interesting to note that every time The House Crowd buys a property – typically for about £45,000 – the rebuild costs for insurance purposes are upwards of £80,000 and often closer to £120,000. What that says to me is that if the cost of building new property is considerably more than existing stock (land values aren’t even taken into account in the example above).  Common sense suggests that few people will buy a new build property, when they can get a similar sized property for half the amount. It is equally clear that developers aren’t going to build property unless they believe people will buy what they have to sell. And just to reiterate it there is a shortage of housing which increases demand for available property.

It’s a complex relationship but builders have started to build again and the price of old stock will be pulled up by the price of new builds as sellers realize they can achieve higher selling prices whilst still pricing competitively against new builds.

So there are definite signs that the property market is heating up. You may well have seen the news headlines about average property prices increasing at £1000 a month and prices spiraling – out of control. I wouldn’t believe the hype for one minute but there is undoubtedly upward price movement.

One factor for this is new investors putting their money into property as they are tired of the woeful returns provided by the banks and pension companies.

The new government incentives have also helped boost the market (artificially many might say).

But it is not so much the price of a property but the affordability factor that is the biggest influence in house prices.  People’s income, the deposit required, the ratio income to borrowing permitted and interest rates all play a bigger role than the actual price tag. That is why all the Generation Rent talk about nobody being able to afford to buy any more is hogwash. If nobody can afford to buy the prices fall. The market corrects itself. The only place where that viewpoint holds any water is London where there are huge amounts of foreign buyers pushing up prices to a level ordinary working people cannot afford.

That may be good bad or dangerous (another property investment bubble?) depending on your point of view.

But in terms of achieving capital growth over a relatively short space of time (say the next 5 years), I believe there has never been a better time to invest in property. Warren Buffet recently said he would buy a couple of hundred thousand houses right now if the management of them wasn’t such a problem. Well that’s why the House Crowd was created. We can help you build a property portfolio with an equitable interest in a large number of properties (thus spreading our risk) without any management hassles at all.

So why not make hay whilst the sun shines and give us a call.

Slimmer yields for landlords in 2014? Not for our investors…

According to ARLA, the average yield across the country has fallen to around 5.5%. A journalist recently put this point to me and asked (somewhat sceptically) how we could offer much higher yields.

I responded that average returns are just that.  They represent what an average investor buying an average property in an average area could expect to achieve.

That statistic encompasses properties where yields are 1% and properties where they are 14% or more.  We research areas where the average yield is higher and then cherry-pick the best deals in that area to maximise yields.

The criticism is akin to saying “Usain Bolt claims to be able to run 100m is 9.69 seconds but how can that be when our research shows the average time to complete 100m is 14.8 seconds.”

In short, we are not your average investment company.

Having said that, we are susceptible to market conditions as is everyone and as house prices increase at a higher rate than rents, it is inevitable that yields will decrease.

So, does that mean we will not be able to offer our clients such attractive returns?


It simply means we have to adapt. We are experienced in many areas of property investment, are extremely flexible and already have plans in place to ensure that we can still offer you very attractive returns whatever the market conditions.

The new areas we are moving into and the new business model we are launching next month will enable us to continue to deliver well above average returns.

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

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 VC’s 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 VC’s making investments in property via crowdfunding, it’s great news for the industry across the world.