Property Investment Project Update 003

If you’re a member, you will have already received our latest property investment information announcing that House Crowd Project 003, on Old Lane, Little Hulton is on the market for sale. Hooray!!!

The property was purchased this year in May for £39,000 and after £15,000 of refurbishment costs, a great deal of blood, sweat and tears – Ok,  maybe not the blood part, and some major issues (all resolved now!) it has been given a new lease of life and is currently on the market and expected to sell for £72,000, an estimated 25% ROI after costs. Not bad hey!

When dealing with property – especially with repossessed property – there are plenty of problems and setbacks. Of course, if it was easy, everyone would be doing it, and that’s why we are here – to deal with the problems that inevitably arise and let you get on with your life free of the hassle.

You can see before and after pictures of Old Lane on our Facebook page – We’ve also added a few snaps of our very own Managing Director, Frazer Fearnhead, sleeves rolled up, getting his hands dirty, applying the finishing touches to the house.

 

 

The value of property revival

At a time when high-street shops are struggling more than ever, it is a welcoming relief to learn that the Government, following on from Mary Portas’s High Street Review, will be implementing a number of high street – Town Team pilots across England to further support regeneration.

Earlier this summer it was announced that twenty-seven town centres across the country, including Morecambe and Stockport, would receive a slice of a £2.7million budget and a tailored package of support for rejuvenation from both the Housing Minister and celebrity retail guru, Mary Portas, as part of the Portas Pilots.

Towns which missed out on the Portas Pilot competition are still able to apply for a new package of support, which includes multi-million pound financial incentives from the Government and access to advice and support from leading retail experts. In addition, those towns which succeed in regenerating their high streets can apply to be considered for the Future High Street X-Fund and potentially win a share of the £1million prize on offer.

The value of such initiatives cannot be underestimated from a property perspective. Breathing life back into rundown town centres not only increases the aesthetic appeal of an area, but also attracts further development, transport investment and leisure facilities – all of which are central to property value. Here’s hoping the numerous incentives on offer for an entrepreneurial approach to town centre rejuvenation can be the turning point in fortunes for high streets across the country.

At The House Crowd we use our expertise to look beyond the current state of a rundown property and consider what it can become with our investment. Informed property selection, followed by shrewd refurbishment, allows us to offer investors a typical return of 12%-14% in approximately 6 months on our short term develop and sell projects.

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/)

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!