Local councils across the country are expected to announce new measures to tackle the 4m strong waiting list for council properties; meaning a wave of demand in the private rented sector is imminent.
Hammersmith & Fulham council has led the way, announcing that couples earning over Â£40,000 a year will no longer be eligible for a council property, which has gone much further than housing minister Grant Shappsâ€™ suggestion that those earning over Â£100,000 should be not eligible. And other local authorities are expected to follow suit.
This burst of activity is in response to the Governmentâ€™s new legislation which has seen an end to tenancies for life, affording local authorities more flexibility when dealing with waiting lists.
As aÂ property investment groupÂ which focuses on refurbishing distressed or repossessed properties and providing property to those most in need,www.http://thehousecrowd.com/thehousecrowd/Â is already poised and ready to meet this surge in demand from those no longer eligible for a council property.
We reported in a recent blog about zombie landlords, and the fact that it wouldnâ€™t be too long before banks began to increase their mortgage interest rates. Well, as expected, they have risen again and for some, this could stretch their finances to breaking point.
A report out last week from the Council of Mortgage of Lenders stated that a total of 9,600 homes were repossessed in the first three months of 2012. Some people out there (who seem to like criticising anybody who actually does something) have been complaining that The House Crowd is immoral to be profiting from people who have had their house repossessed.
To which we reply ‘what utter tosh’.
Without getting into the morality of whether it is justifiable to repossess a property in a particular case, the fact is the repossession is nothing to do with us; or anyone engaged in property investment, we only become involved months after the mortgagee has repossessed the property and have no part in the decision to evict. Â What we do is simply buy the property by paying more than anyone else is prepared to pay (every repossessed property that is sold has to go through a public notice period so the bank can obtain the best possible price).
I am not sure what perverse rationale these people use to claim that we are immoral (I think they just hate any property investor or buy to let landlord); would they seriously prefer the repossessed property just stands empty and deteriorates rather than us refurbishing it and providing a good quality home Â for someone who needs it else.
Oh and god forbid we make a profit out of it – how immoral would that be?Â I don’t now what planet these people live on but I’m glad I don’t live there. I bet it’s miserable.
Members of the property industry are today urging the Government to encourage property investments by big investors Â to support â€˜build to rentâ€™ 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 â€˜build to rentâ€™ schemes.
We at www.http://thehousecrowd.com/thehousecrowd/ think this news is fantastic â€“ 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 Â£1,000, we are even a great savings alternative for first-time buyers trying to gather their deposit!
At The House Crowd we are opening property investment to the masses; however, in doing so we are also doing our bit to bring properties back to life and make them habitable. We are buying distressed properties and giving them life. This surely has a positive impact on an area. Our method requires investment in order to do this and our transparency in what we do is there for all to see.With this type of alternative investment, we have to raise funds to do what we do and those who contribute to the project will inevitably benefit as they have invested their money. What we offer is an alternative investment that is a Â win/win for all concerned. Homes that are left to perish are an unpleasant sight to many and at The House Crowd Â will bring properties back to life. Let’s face it the statistics speak for themselves 1.7 million families on housing waiting lists and we have almost 750,000 derelict properties in the UK. The House Crowd via its alternative investment can help in this process we support the Empty Homes Campaign http://emptyhomes.com/what-we-do-2/
We were very pleased this week to get an article about us and crowdfunding property investment published on the Daily Mail’s This Is Money website. We were less pleased with the trolls who decided to completely trash what we are trying to do without even bothering to try and understand it. Seems to me these people must have had some pretty bad experiences to end up with such a bitter cynical view of life. Still, on the plus side, we also had a number of very positive emails as a result of the article and several new investor applications. We are now well on our way to making our first crowdfunded property investment and are going to view some potential investment properties this afternoon.
Joint Ventures Property Investment
Back in 2012, when we were first starting out, we were the first to offer the property crowdfunding investment model. At that time, things were very different to how they are now. Just take a look at this quote from our blog back in March 2012:
“I’ve just been lurking around the property investment forums such as Property Tribes. There seem to be some interesting discussions about joint ventures in relation to property investment but some scepticism about the partners involved, especially as they all seem to charge fees in one way or another.
Not a true joint venture in my opinion.
Hopefully, people will realise we offer a simple, transparent way they can participate in a genuine joint venture and invest in property for mutual benefit.”
This is an example of what we were thinking about back in 2012 when we first launched.
However, since that time, we are pleased to have seen the property crowdfunding market catapult in popularity. Indeed, people did wake up to the simple, transparent joint ventures in property investment that we offered. So, too, did many other property entrepreneurs, who began mimicking our model and setting up their own property crowdfunding and P2P platforms.
Now, the industry is worth billions worldwide. We are proud to have been the first, and still the leaders, in offering a way to invest in a diverse portfolio of property with the potential for high returns.
Find out more by registering with us, or view our property investments directly: