For the part-time landlord, those who have a property or two to rent out but don’t see it as their full-time job, these are worrying times.
This group, accounting for roughly 70% of all landlords, faces a squeeze on profits and a ramping up of admin.
And with house prices rising and competition for quality properties high, just finding an investment opportunity within budget is a challenge in itself.
But out of difficult times spring new opportunities.
Crowd funded property investment is an increasingly popular choice. Here’s why it might be right for you
Continue reading “Crowd Funded Property Investment: 10 Reasons Why It Is Right For You”
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?”
We are proud to announce The House Crowd is one of just 10 companies across the UK that has caught the attention of judges and has been shortlisted in the New Business of the Year Award category for the highly prestigious National Business Awards 2014!
It is recognition of us democratising the property market through crowdfunding – revolutionising how would-be investors, particularly those with smaller budgets can invest.
Judges were impressed with our disruptive and pioneering spirit, opening up a much-loved but notoriously difficult-to-enter market. The House Crowd’s strong customer service and general impact on the North West property market was also noted.
Our MD, Frazer Fearnhead said: As a start-up with big ambitions, it’s fantastic to be recognised on a national level. The House Crowd is part of a whole internet revolution that is giving power back to the people and creating a global community that can interact with each other, cut out big institutions and join forces for the common good. 67 % of our investors felt cut of from property investment before they found The House Crowd.
On a regional level, we are helping some of Greater Manchester’s “forgotten” communities to re-establish themselves. Breathing new life into old properties can have a dramatic effect on local communities as a whole, bringing in new people and ideas, and helping to create a new sense of pride in an area.
On a global level, we are trailblazers – creating a unique, innovative and ground-breaking concept, now emulated in several different countries.
The House Crowd has succeeded in injecting people power in to the once elitist UK property market and in turn, has brought property to the general population.
The winner will be revealed at the National Business Awards gala dinner held on 11 November in London. Fingers crossed.
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.
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 Authorityâ€™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 crowdâ€™s money from the platformâ€™s â€“ 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 â€“ to find out how, click here.
Impressions aren’t everything. Investors are now beginning to look way beyond the wealthy, gold-plated streets of London and into more lucrative areas of the country.
The latest data on buy-to-let returns, from lender HSBC shows cities offering the greatest yields (rental income measured against property cost) include Southampton, Blackpool, Nottingham and Hull with many private landlords in these areas owning at least 1 in 4 properties.
Taking a moment of pride – Manchester falls into the top 5 cities offering the greatest yield with a return of 7.98%. That’s number TWO on the list!
So why are these cities more attractive to landlords you ask?
The answer; although London properties offer prosperous returns due to high rental income, the original investment near extinguishes the return. High house prices in the big city crush the yield and limit the return. Therefore, investments into the top yielding locations are much more appealing to landlords thanks to healthier returns and overall more durable investments.
So it certainly pays to do your research, and here at The House Crowd, we’ve done just that from our very first investment. Visit our Why Join? section for more information on the benefits of property investment with The House Crowd.
Information sourced from: http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/10859896/The-towns-that-offer-the-best-buy-to-let-returns.html
This spring season has seen a national property average price rise of 3.6%, nearly a whopping Â£10,000, pushing the national average up to a record high of Â£272,003, said to be caused by the combination of the Easter and May bank holidays causing a lull in the number of properties coming to market at a time of high demand.
Whilst demand for housing remains strong (up by nearly 20% for Rightmove enquiries so far for 2014), the supply of new properties just canâ€™t keep up. Early 2014 appeared to be a tease, fondling with an increase in new sellers.
Annually, the rate of increase is now 8.9% (the highest rise since October 2007 when it stood at 10.4%), yet whilst the housing market momentum is recovering, London is still letting the team down. New seller asking price in the big streets of London is up by 16.3% compared to an average of 4.9% in the rest of small town England and Wales. Translation? 2014 asking prices are up by around Â£4,405 per week in London whilst the weekly average for the rest of us is Â£1,521.
Indeed, outside London and its commuter belt, demand may be better balanced with supply by the more stringent checks and affordability tests under the Mortgage Market Review (MMR) that became mandatory less than a month ago. The main conclusion at present is that the delays in lendersâ€™ processing systems are curtailing lending, with it being too early to comment whether mainstream buyer activity will have a significant drop-off from the new controls.
Where a major imbalance exists between supply and demand the long-term solution has to be to create more housing supply to meet any structural need rather than to artificially hold down demand. But with Spring over and the summer fast approaching, the lull in the market can only get better! This is where we come in! Here at The House Crowd, we believe Investors should â€œcrowdâ€ together, each providing a small amount of the money needed to purchase a suitable investment property at a good price,Â typically an empty or run down property where we can add value through refurbishment. This in turn improves the supply of the housing market, creating fair value for money.
For full info on successful property investment click here; http://thehousecrowd.com/thehousecrowd/property-investments/
With the recent industry congratulations on the success of buy to let mortgages, it is not surprising that Barclays has announced to change its buy to let mortgages against a higher rate of 5.79% albeit just to stress test.
A spokesperson from the bank commented they are introducing a new single affordability rate (which will come into effect on Monday 19 May) for all buy-to-let transactions to â€œensure consistency across all productsâ€.
The reasoning behind the decision is apparently to ensure customers can afford their mortgage payments and to withstand whatever may happen with the interest rates in the future.
Of course, investors with The House Crowd neednâ€™t worry about stresses such as these that the banks bring on for landlords and property investors. With our unique crowdfunding model, we make investing in property simple â€“ no banks, no mortgages; the smarter way to invest in property. So why not join our investors and avoid the stresses that banks cause!
The full article can be found here.
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.Â 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.Â 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.â€
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.
Crowdfunding for property is becoming the largest industry in terms of committed capital, according to an article on Crowdsourcing.org.
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 Mogulâ€™s board told what he see are the key things VCâ€™s see when making property investments via crowdfunding:
- Technology is part of the solution, but itâ€™s not the whole solution. You need to attract both sides of the marketplace, the sponsorsâ€¦ 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 VCâ€™s making investments in property via crowdfunding, itâ€™s great news for the industry across the world.