Crowdfunding Here To Stay

As we’ve previously stated, the term, ‘crowdfunding’ is currently all over the media, and as the Telegraph’s own Monty Munford, rightly observed in his article this week, ‘Crowdfunding really is hot’ and he couldn’t be closer to the truth!

According to www.crowdfunding.org there will be more than 530 crowdfunding services by the end of 2012, up 60 per cent on 2011 with 44 in the UK alone. Founded in the States, crowdfunding platform Kickstarter has quickly been heralded the bees knees of crowdfunding, and has been a huge success. Simply put, if a company needs to raise money for a project then investors can use this service to back them by pledging money, from small to large amounts.

As a property investment group based on the crowdfunding model, we are great supporters of the crowdfunding movement and we hope more and more companies take advantage of the growing number of crowdfunding services available today – cutting out the traditional money men and instead raising money via peer-to-peer lending, what could be better! In an environment where it is becoming harder and harder to borrow money from the banks, which are nowadays not particularly serving the people they were created to assist, crowdfunding can only grow from strength to strength.

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

 

The House Crowd featured in Greater Manchester Business Week

The House Crowd is just all over the media lately!  Since we launched in March, we have had lots of new members join us, almost 700 now and we received some great very positive press coverage, which is fantastic! Crowdfunding is definitely taking off in this country.

This month saw us grace the pages of Greater Manchester Business Week, in an article about the crowdfunding phenomena that is sweeping the nation. The article goes in to detail about the concept, how it works, how to make the most of it and introduces Anne Strachan from CrowdfundUK, the only crowdfunding trainer in the North West.

As The House Crowd is an online crowdfunding property investment company which enables people to invest in property, we fitted in very nicely with the piece. If you didn’t get the opportunity to read the article, then fear not, here is the link – http://menmedia.co.uk/manchestereveningnews/news/business/sme/s/1580978_crowdfunding—how-to-stand-out-with-a-little-help-form-the-crowd

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

Did You Hear The House Crowd on Radio 4?

Did you hear us on Radio 4?

This week saw our very own managing director, Frazer Fearnhead take to the microphone and appear live on Monday You and Yours show on BBC Radio 4, discussing the numerous benefits of being a member of The House Crowd.

The interview was a great success and resulted in a great many new sign-ups by new investors, who recognised the great many benefits of the property crowdfunding model after listening to Frazer’s enlightening explanation.

If you didn’t get the opportunity to listen to the interview, then don’t panic, you can check out the link below to listen along at your leisure. Scroll forward 17 minutes, 20 seconds to get to Frazer’s bit:

Listen to Frazer on Radio 4!

We hope you enjoy listening, and if you haven’t already jumped on board The House Crowd bandwagon,  why not join us now?

How To Find Out More

Register with us to find out more about getting involved with property crowdfunding, as a way to generate potentially excellent returns on investment through very little financial outlay:

Register Now for more Info

Find out more about How It Works

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

Update: Since this Radio 4 interview first aired in 2012, The House Crowd has gone from strength to strength. We continue to be the leaders in the property crowdfunding space in the UK, and our presence and great reputation is continuing to grow all the time.

Many more platforms emerged after us, and some have gone on to do very well. In fact, the entire property crowdfunding industry has exploded since we took those tentative first steps. It is now an industry worth billions worldwide.

No matter how big the industry grows, however, we are confident that, as well as being the first, we will always be the best.

Are London Property Prices Falling?

As is often the case, our capital is the matriarchal figure around which the rest of us follow. It is deemed by many to be the best tourist destination, the best place to find top notch restaurants, and generally the best place to live.

However, while for years it has defied the house price falls seen throughout the rest of the UK, recent reports from the ONS suggest London is now leading the way when it comes to plummeting house prices. Visit http://www.guardian.co.uk/money/2012/may/23/london-house-prices-catch-cold for the full article.

Whether or not this news means we should all be wary and expect the same elsewhere in Britain, for investors with The House Crowd it is irrelevant as their investments are not reliant on property prices increasing – our property investment strategies are much more effective than that!

 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 our how it works page). We are committed to breathing life into empty, rundown properties whilst giving investors great returns on their investments (for more information about us, please look at our manifesto page). If you’ve read enough and want to invest now, go to our invest with The House Crowd page).

Stepping Up To The Plate: Letting to Local Housing Association Tenants

The House Crowd steps up as many landlords step back from Local Housing Allowance tenancies.

More than half of landlords can no longer afford to rent to tenants on housing benefit, according to a survey by the National Landlords Association (NLA), which we at The House Crowd think is a very worrying statistic.

We’ve known for a while that cuts to local housing allowance were happening. But with 53% of landlords now stating these cuts make it untenable to rent to those on benefits, and almost 69% saying they don’t expect to rent to local housing allowance tenants in the future, what position does this leave these vulnerable people in?

It is times like these when property investment strategies such as our crowdfunding model really come into their own. Not only are we stepping in as local housing allowance landlords, at a time when supply is increasingly limited but demand is high, we are also enabling would-be landlords the opportunity to be part of a property investment group, without the worry that issues such as these can present.

Whilst we know that our model is a great way for investors to make good potential returns in the property market, we are a company that – essentially – is concerned with the social good of our country. Alongside allowing a wider range of people to get a foot on the property ladder through the investment of whatever sum they have available, we are also committed to improving the state of the market for those seeking homes.

We work with SPVs who refurbish old properties to improve the standard of living for the next owner or tenant, and we make it easier for people seeking rental accommodation to find a home they feel comfortable in. By cutting out the banks and mortgage brokers, we are able to open the doors to more opportunities, both for investors and for those looking for a home in this environment of supply/demand catastrophe.

If you like the sound of a more democratised property market in the UK, then why not find out more about investing through property crowdfunding?

You can learn more about the work we do by registering on our website by clicking the purple button below. If you just fancy a browse through the properties we have on offer for investment at the moment, click the blue button!

Register Now for more Info

View our Property Investments

If you have any questions, or just want to chat about property investment and get some advice, then drop us a line. We’re always happy to help out!

Big investors encouraged into property industry

Members of the property industry are today urging the Government to encourage property investments by big investors  to support ‘build to rent’ schemes.

 

The Montague Review is looking at whether there are barriers preventing institutional investment in the private rented sector, on the basis that more rental accommodation is needed than the existing buy-to-let sector could supply.

 

A response by the British Property Federation, Association of Real Estate Funds and the Investment Property Forum says that big investors could be interested in the sector if there were legal S106 agreements in place, which would ensure that all properties on a development would be rented out for at least 10 years and not sold. It also calls for this type of housing to be recognised in the National Planning Policy Framework, so that local authorities could meet housing need through ‘build to rent’ schemes.

 

We at www.http://thehousecrowd.com/thehousecrowd/ think this news is fantastic – a great way to entice much needed property investment into the sector, while meeting current housing needs at the same time. While this model focuses on building new properties to meet demand, The House Crowd model concentrates on breathing life back into repossessed or distressed properties. Our model will not only bring old housing back onto the market, it will also give high property investment net yield to our investors; and with our low capital investment of just £1,000, we are even a great savings alternative for first-time buyers trying to gather their deposit!

Do You Need To Be An Olympic Hurdler?

Eying up the hurdles that now face buy to let investments in this current climate  – daunting. You may need to be an Olympic  hurdler to overcome them and invest in property successfully.  The main top five which stop many are as follows:

  1. Deposits are now as much as 25% to – larger cash injection.
  2. Valuations are not meeting sell price – more cash to find.
  3. There are now large fees on arranging a mortgage – more cash.
  4. Standard Variable rates are not in line with the base rate – who is winning here!!
  5. Legal fees and all associated fees – more cash.

Let us take an £85K house that is on the market – and you get it for £80K (well done you may think). Based on a 20% deposit that is £16K to find for the deposit. Now along comes the valuer and he or she reckons that the property is only worth £75k and the mortgage company will only lend you £60K to buy the house – leaving you out of pocket another £5K! The mortgage company says that they have a great rate at 4.99% (4.49 points above the current base rate) and they want to charge £2K for the honour of giving you such a high rate. (who is benefiting there then!) The associated legal fees are a variable but  on these type of buy to let investments you should set aside another £1K. When you get your tenant in, you have the usual expenses of which are obviously a variable – but are time consuming and are by no means hassle free.

You will still need to shell out £24K.

£16K deposit

£5K shortfall due to valuation

£2K for a mortgage arrangement fee

£1K legal fees

Not particularly attractive – a fundamental reason for an alternative option!!!!!

Check our FAQs at The House Crowd http://thehousecrowd.com/thehousecrowd/faqs/

 

Today’s The Day

Today is the official launch of the world’s first crowdfunding property investment company. (That’s us by the way).

If you haven’t heard of crowdfunding before and want to know more you can read all about it on Wikipedia. We hope you all agree it’s a great idea that can help people achieve much better returns on their savings and do so without giving the leeches “ who’ve just decided to put up their standard variable mortgage rates – any business.

Question:Can someone please tell me what the point of signing an agreement that allows one side (i.e. the banks) to alter the agreed rate payable whenever they feel like it.

Seems somewhat unfair to me.