Latest Peer To Peer & Development Performance Stats

March 2017 Summary P2P & Development Stats

March 2017 summary and monthly statistics can be seen below.

Bridging Loans 31/03/2017
  Net
Total Amount Lent £14,971,670
Total Returns Paid £458,801
No of Loans 41
No of Loans Repaid 18
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £364,658
Average Loan to Value 70%
Average Interest Rate Paid 8.94%

 

Development Loans 31/03/2017
  Net
Total Amount Lent £11,010,571
Total Returns Paid £146,212
No of Loans 16
No of Loans Repaid 5
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £688,161
Average Loan to Value N/A
Average Interest Rate Paid 11.69%

You can find all our latest investments by clicking here.


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Peer To Peer and Development Performance Stats

December 2016 Summary P2P & Development Stats

December 2016 Summary Monthly Statistics can be seen below.

Bridging Loans   31/12/2016
  Gross Net
Total Amount Lent £10,773,024 £9,624,670
Total Returns Paid £292,637 £292,637
No of Loans 28
No of Loans Repaid 14
Average Loan Period 10
Investors Capital Lost £0
Average Loan Size £384,751 £343,738
Average Loan to Value 70%
Average Interest Rate Paid 9.00%
Average Interest Rate Offered 9.08%

 

Development Loans   31/12/2016
  Gross Net
Total Amount Lent £8,865,861 £8,019,571
Total Returns Paid £46,862 £46,862
No of Loans 12
No of Loans Repaid 2
Average Loan Period 9
Investors Capital Lost £0
Average Loan Size £738,822 £668,298
Average Loan to Value N/A
Average Interest Rate Paid 14.00%
Average Interest Rate Offered 11.92%

You can find all our latest investments by clicking here.

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Manchester Property Market Growth at 12 Year High

Manchester Property Market Growth at 12 Year High

Latest figures released by the Hometrack Index show Manchester property market growth to have hit a 12 year high in 2016. This gives the city the second highest rate of price growth in the UK, next to Bristol.

A rise of 8.9% year-on-year for Manchester was reported, with experts predicting that the city will overtake Bristol for pole position by the end of the first quarter of 2017. The figures for Manchester exceed the average year-on-year increase across the UK, which came in at 7.7%.

Strong market fundamentals, particularly a significant supply/demand imbalance in Manchester, keep pressure on prices high. Despite the same supply/demand imbalance in the capital however, London dropped to seventh place for price growth in 2016.

Strong Market Fundamentals Keep Manchester Property Market Growth Thriving

Manchester’s vibrant rental market is also thriving, with demand continuing to grow. This, of course, makes it a dream opportunity for buy-to-let investors. Indeed, the city was recently named the UK’s buy-to-let hotspot by HSBC. This is all despite the massive challenges faced by buy-to-let investors following the government’s attacks on landlords.

The growing popularity of property crowdfunding is helping prospective buy-to-let investors push back against these attacks, providing a welcome haven for those keen to benefit from a steady stream of secured rental income.

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Rental growth here is 13 times that of London, driven by the growing population of young renters, flocking to the city for studying and career opportunities. Manchester boasts 60% more 25-29 year olds than the UK average, placing it within the country’s fastest growing demand for short term lets.

Massive Investment In Manchester Fuelling Property Market Growth

Success is also compounded by the government’s whopping £7 billion investment in Manchester. Determination to develop a world-class infrastructure in the city will attract further billions of worldwide investment over the coming years, which is already evident as overseas investors hone in on the investment opportunities offered here.  

Over 100,000 students across Manchester’s four main higher education institutions give it the highest student population in Europe.

70,000 of these are not in student halls of residences, meaning they are renting privately within the city. This makes it prime territory for PBSA (Purpose Built Student Accommodation) investment.

Across the board, from the UK-leading purchase market, to the thriving private rental and student markets, right through to commercial investments, Manchester is winning. As growth in the city’s property market continues at an unprecedented pace, with huge investment fuelling projected growth for years to come, we remain confident in the continued promise that our city offers investors.

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Our 2016 Summary

Our 2016 Summary

December saw another successful month for The House Crowd, which rounded the year off nicely for us and allowed us to start 2017 on the right foot. It was a very busy month, with 4 bridging loans being repaid, 1 property sold and seed capital repaid for one of our development projects. We paid out over £2.2 million in capital returned to 693 investors. You’ll find the stats, for December, as well as for our 2016 summary, below:

December 2016

Projects paid out against – 24

Total Value of dividends and interest paid – £195,747.96

Total Value of Capital Repaid – £2,057,295

Total paid out to investors for December – £2,253,042

Total number of investors paid – 693

2016 Final

Project paid out against – 240

Total value of dividends and interest paid – £794,126.60

Total Value of Capital Repaid – £4,554,720

Total number of investors paid – 5,506

Cumulative

Project paid out against – 434

Total value of dividends and interest paid – £1,135,625.00

Total Value of Capital Repaid – £5,005,720.00

Total number of investors paid – 8,498

We’re excited to see where 2017 takes us, and hope that you will join us for the ride. With many upcoming developments and exciting projects to invest in, we’re sure that 2017 is going to be a year to remember.

You can find all our latest investments by clicking here

 

Apache Capital Partners Fund 466 Private Rental Sector Homes in Manchester

Apache Capital Partners Fund 466 Private Rental Sector Homes in Manchester

Property investment management firm, Apache Capital Partners, has teamed with Moda Living to secure senior debt financing of £85m, secured on the Angel Gardens development in Manchester city centre. The development will create 466 private rental sector homes in Manchester.

Deutsche Pfandbriefbank has agreed to a four-year term funding contract for the construction period of the development, which will convert to an investment loan for the rest of the term. The development is set to cost a total of £153m. Completion of the project is set for 2020.

The premium private rental sector apartments will stand 34 storeys tall, making it one of the tallest residential towers built outside London since the 2008 crash. Covering 520,000 sq ft, the Angel Gardens development forms part of the NOMA redevelopment project, regenerating a 20-acre site opposite Manchester’s Victoria station.

Angel Gardens and Beyond…

Angel Gardens, however, is not the only private rental sector delivered by the joint venture between Apache and Moda Living. It will be the first of many private rental sector developments created by the venture. In the pipeline is a total of 5,000 new private rental sector homes across eight cities across the UK, including London and the south east.

Johnny Caddick, managing director at Moda Living, believes the project will “set new expectations for rental housing in Manchester and throughout the UK”.

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Private Rental Sector Homes in Manchester: On Trend

Investing in property in Manchester is becoming a real trend for high profile investors. And the private rental sector is hot property, considering the vast increase in those seeking rental accommodation. It is mainly the young professionals, who are flocking to the city for its huge career opportunities, that make up the bulk of renters in the city. Angel Gardens will be ideally placed for the many employed in the NOMA area, as well as those commuting into Manchester Victoria.

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An Introduction to Investing Through Property Crowdfunding

An Introduction to Investing Through Property Crowdfunding

Traditionally, only those with access to large amounts of capital have been able to invest in the lucrative world of property. Managing a portfolio is normally time-consuming, business, which becomes increasingly more burdensome as the investor’s portfolio becomes larger.

However, in the last few years, a new method of property investment has emerged which has effectively democratised the entire investment process, allowing more people than ever to benefit from the financial gains that property investment can offer.

Property crowdfunding started to take off in 2012, and is now worth billions of dollars a year worldwide. The value of the industry currently doubles every two months, and is set to be worth $250bn by 2020.

The growth of the property crowdfunding industry has been catalysed, in part, by the relaxation of regulations over the last few years. The Government has identified the industry as being hugely beneficial to the economy, and has also begun investing in crowdfunding itself. Institutional investment is also coming into play at an increasing rate, and high net worth investors, attracted by the simplicity of the process, and the returns available, are also investing through property crowdfunding.

But why is investing in property crowdfunding proving so popular?

Offering the chance to build a diverse portfolio without all the legwork involved in traditional property investment models, and with the opportunity for significant gains, it’s no surprise that investing in property crowdfunding has grown exponentially in the last few years.

What’s more, as interest rates on savings continue to crawl along the seabed, and returns from both rental and sales continue to rise, more and more people are waking up to crowdfunding as a simple way to grow their money.

How Does It Work?

Property crowdfunding encompasses both equity investments and debt based investment (also known as peer to peer secured lending).

The concept itself is relatively simple.

Equity investments involve a group of people pooling their cash to buy a property as shareholders through a ‘Special Purpose Vehicle’ (SPV). The SPV is a limited company, set up solely for the purchase of that property. The SPV handles all the work, fees and maintenance of the property, whilst the shareholders receive their proportion of the rental yields, and/or share of capital gains when the property is sold.

People can invest even very small sums in buying shares in the property. On some platforms, this is as low as £50, but the typical minimum is between £500 and £1000. One of the advantages of property crowdfunding is that you can spread your available capital over a number of different properties across the crowdfunding platform, to mitigate risk.

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Getting started is a very quick and easy process. You simply register on your chosen website – it is an FCA requirement that only registered and accredited investors may participate, and, once registered, you simply select the properties you wish to invest in.

Debt based investments again involve pooling resources, in this instance, to make micro loans through the platform to a third party borrower. The loan as a whole is secured against the borrower’s property and the platform appoints an agent to act on behalf of lenders and take any necessary enforcement action. These types of investment are usually short term (up to 12 months, and pay a fixed rate of interest with no capital growth).

Where Did It Start?

The House Crowd is the longest-established property crowdfunding platform. It began trading in 2012 and offers both debt and equity investments. Since then, other companies have followed in their footsteps, such as Property Moose in 2013, and Property Partner and Crowdlords in 2014. The industry continues to expand, with several new platforms emerging each year.

Is It Regulated?

Property crowdfunding firms are all regulated by the Financial Conduct Authority (FCA), which ensures that platforms are managed properly, and that risks are made completely clear to investors. As with any investment, there is risk to capital – but it’s worth comparing this risk against other investment classes, and seeing how property crowdfunding stacks up.

Before investing through property crowdfunding platforms, it is very important to do your research. Every regulated platform should have the FCA authorisation number clearly visible on their website. If you can’t find these details, you should steer clear as they are not operating legally.

Is It The Right Choice For Me?

As with any investment, you need to take into account your personal circumstances to establish whether it is the right one for you.

You can find out more about establishing whether property crowdfunding is the right investment for you here.

Ask yourself what you wish to achieve. Investors with a lot of professional experience and access to bank funding, may find the model less appealing than novices.

If, on the other hand, you don’t have a deposit available, or aren’t able to get a mortgage, then investing through property crowdfunding could be an ideal way for you to access this asset class. And, given the government’s recent attacks on landlords, which has severely undermined the profitability and viability of buy-to-let investing for individual investors, it may well be that crowdfunding remains the only sensible option available for most.

Risk

The same principles that apply to other forms of property investment also apply to crowdfunding. You should be aware that capital growth profits are speculative, and investing in properties that produce a healthy cash flow is the more sensible approach.

One of the major risks associated with cash flow positive properties is that of damage or non-payment of rent. As such, you should always factor this in as an eventuality that may affect your yields. As mentioned above, however, if you have a well-diversified portfolio, with your capital spread over several properties, any losses due to one bad tenant will be more bearable than if you had all your eggs in one basket.

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At the end of the day, it all comes down to your risk tolerance. You do lose a large amount of leverage by investing through property crowdfunding, and you will only benefit proportionately from the property’s capital growth but, at the same time, having no borrowing means significantly less risk as there are no mortgage payments and no danger of the property being repossessed (as shareholders own it outright).

If making crowdfunded debt-based investment, (aka peer to peer lending) you need to know what would happen if the borrower defaults and does not repay the loan. You should ask questions about how your investment would be protected, what happens in the event of a default – how easy is it to take control of the secured property? – and how much equity is available to enable you to recover your money should the worst happen. Unless there is sufficient equity in the property, you could risk losing some or all of your money.

If you opt for debt-based investments, your investment will be secured by a legal charge. A critical matter to consider is at what LTV the loan is made. If, for example, a loan is made at ‘75% LTV’, it means that you will be at risk of losing some of your capital if the borrower defaults, the property has to be seized, and is sold for less than 75% of its current valuation.

Debt investments are generally considered to be lower risk than equity investments, as lenders are always paid out before shareholders, however, you do not get the potential upside of capital growth.

What About If I Want Out of My Investment?

If you need a liquid asset, then property is not the best choice.

Investing through property crowdfunding facilitates liquidity to some degree as it may be easier to sell shares in a property than the whole property. However, there is never any guarantee that you will be able to find a buyer, and, if you cannot do so, you will have to wait until the property is sold.

Some platforms will help you to find a buyer after the expiry of a minimum term, but you should check the small print before you invest. If you’re looking for a short term investment, P2P secured lending may be the better option.

To Conclude

We hope that this has offered you some valuable insight into getting started investing through property crowdfunding. Of course, you should know everything about the ins and outs of any investment before you part with your money, and we are fully committed to helping you know all you need to.

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If you have any questions, you can always get in touch with us and we will be very happy to fill you in.

Traditional Property Investment versus Property Crowdfunding

Traditional Property Investment Versus Property Crowdfunding

Property crowdfunding and traditional property investment have some significant differences. The main difference is to be found in the nature of managing the investment.

Whilst those who favour traditional property investment value the sense of control associated with full ownership of a property, there are significant costs and time commitments involved in maintaining their investment, Property crowdfunding on the other hand is to a very large extent a passive investment with thord parties managing everything on your behalf. So if you do not have the time, nor the resources, to keep up with the demands of building a property portfolio it can be a very attractive option.

There are also additional financial implications to consider, and we will go into these in this article.

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Responsibility

Property crowdfunding eliminates many of the responsibilities involved with traditional property investment. An investor wishing to create a properly diversified portfolio of properties will invest large sums on a smaller range of properties, and will be responsible for everything from biological disruptions (by infestation of plant or animal life), to managing tenants and weathering void periods on a rental property. With a crowdfunded property investment, none of these aspects apply, as they are taken care of by a third party.

Find out more by registering here.

Furthermore, the due diligence, prequalification and vetting of an investment property are all handled by the SPV (Special Purpose Vehicle), the company behind the purchased property.

If, on the other hand, you have the skills and experience necessary to avoid mistakes and handle the investment on your own, then traditional property investment will probably be a lucrative way to grow your money. That being said, you will need substantially more money in the first place in order to make your first investment purchase.

Fees and Costs

There’s also the matter of fees. A traditional property investor will have to contend with solicitors’ fees, mortgage broker fees, loan arrangement fees, and surveyor charges, for example. With property crowdfunding, these fees are included within the overall cost required to sell the property, as listed on the crowdfunding platform’s website.

It’s also worth learning from the mistakes many property investors made ahead of the 2008 property crash. Many found that their mortgage lenders had allowed them to leverage at a rate that exceeded their affordability. The banks then revalued people’s assets, leading to a swathe of repossessions, subsequent catastrophic loss, and bankruptcies.

Checking the small print and getting legal advice when investing with the traditional property investment model is wise. Then again, none of this applies to property crowdfunding.

This is, of course, a worst-case scenario for traditional property investors. It is, nonetheless, one that still bears some weight. If mortgage rates rise, those who have invested with a mortgage may find themselves out of pocket. Buy-to-let investors should take the obvious step of making sure that their monthly rental income covers, at the very least, their mortgage repayments by at least 130% and should factor in potential mortgage rate rises.

Find out more about our current property investment options.

Buy-to-let landlords have also been hit by changes in Government legislation that have removed the ability for these landlords to deduct interest from profits from their tax liability, which can prove a further obstacle to ensuring the profitability of their investment. Again, there are no such risks with property crowdfunding, which usually buys properties for cash with no or minimal borrowing.

Challenges and Rewards

Whilst there are challenges involved with investing in property in the traditional manner, there are also a great many rewards. First of all, rather than earning a percentage of returns based on your initial investment sum (as with crowdfunding), once all outgoings (such as loans and legal fees, for example) have been taken into account, an outright property investor could earn a potentially much higher return.

There is, however, a downside to this. Where a traditional investor leverages a lot of cash, the risks to the investment are increased dramatically. Should the investment value fall, they could stand to lose a very significant amount. Whilst risk is, of course, not negated with property crowdfunding, no mortgage is necessary.

Selling Your Investment

Another benefit of traditional property investment is the control over when to sell the investment. If you are able to sell at a profit, and as quickly as you require, then the power is in your hands. Property crowdfunding, on the other hand, usually requires a majority vote from all shareholders if you wish to sell before the end of the investment term.

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To Conclude

Property investment, whether traditional or crowdfunded, has long been a profitable investment choice. Whilst both forms of investment carry risk, there are significant pros and cons on both sides, which potential investors need to factor into their investment decision.

Weighing up which type of property investment is right for your particular needs is key to ensuring that you are confident in where to place your money. At the end of the day, however, whichever path to property investment you choose, there is potential for great returns.

Property Crowdfunding: Is It The Right Investment For Me?

Property Crowdfunding: Is It The Right Investment For Me?

Property crowdfunding is becoming an ever-more popular way for people to invest in property, often with significantly less money than investing the traditional way. However, before you jump in, it’s a good idea to assess whether this is the right investment choice for you and your circumstances.

You can view our current property investment options here.

What Do You Want To Achieve?

The first question to ask yourself when considering property crowdfunding is what you wish to achieve from your investment.

If you are looking for an investment that requires less ongoing attention than owning a property for either development or rental, or you personally have more faith in the property market than the stock market, then it could be right for you. Nonetheless, plenty of investors in property welcome the sense of control that owning a property outright brings.

Though there is more additional financial outlay involved in the purchase and maintenance of a property owned this way, some people would rather be involved in all aspects of their investment than leave it to another party.

You can find out more by registering here.

What Experience in Property Investment Do You Have?

This follows on to the second question you need to ask. How experienced are you as a property investor?

If you’ve been a full-time, outright property investor for some time, and have access to the bank funding required to own and develop a property yourself, then property crowdfunding may be less appealing.

For those who know how the market works, and perhaps already have all the necessary contacts they need for the properties they invest in, benefitting from more of the profits (after paying off loans), as opposed to their share percentage, may be a more attractive investment option.

If none of this applies to you, then you could be the sort of person who would benefit from property crowdfunding, depending your circumstances.

What Are Your Circumstances?

For novice or less experienced investors, or those who have less access to bank funding, then property crowdfunding can offer an opportunity to invest in property that is unavailable through other means. For those who are interested in the prospect of weathering the risks of property investment, rather than earning scarcely any interest on their savings accounts, again, property crowdfunding may offer an alternative path.

Whenever you consider an investment, whichever form this may take, you need to ensure that you are covered in the event that the investment takes a turn for the worst. You should only ever invest what you can afford, so make sure your calculations are correct, and you won’t cause yourself financial harm if, for any reason, the value of your investment falls.

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To Conclude

As a final note, if you decide to invest in property crowdfunding, there is further investigation to be undertaken. You will need to choose the right crowdfunding platform. It is very important to do your research, and to only settle on the platform that meets all your needs and requirements. Make sure they are regulated by the FCA, that they have a good reputation, and that their customer service and complaints procedures meet your standards.

View our Property Investments

Entrusting your money with any investment vehicle is a decision that should never be made lightly. Ensuring that you are confident with all aspects of the investment is crucial, including the issue of risk. Property crowdfunding is no different to most other investment types, in that there is always a risk of loss. Knowing everything you can, and choosing the right investment for you, is the key to investing happily, smartly, and – hopefully – profitably.

 

Our Track Record For Rental Properties

Our Assured Rental Portfolio: Statistics For The Last 12 Months

The House Crowd started off in March 2012 buying small terraced houses for around £50,000. As our database grew, it became easier to raise funds and the company has evolved to financing multi-million-pound developments; however, the familiarity of the original buy to let concept, is still popular with many of our developers.

We found during our first four years that renting at the low end of the market is met with some difficulties. Despite our best intentions to provide good quality homes for people, with the expectation they would respect and look after the property, in too many cases (around 20%) non-payment of rent and damage to the property, were undermining the returns we could pay. Our plan was to find a way to satisfy the demand for this type of property, whilst delivering predictable and consistent returns for our investors.

And, I am pleased to say that we found a solution that has proven to work very well in delivering both exceptionally high gross yields and net returns.

That solution is our Assured Rental Product.

We launched our first one in January 2016 and over the course of 2016 purchased 16 more. They have all performed exactly as detailed in our financial forecasts for each project and delivered an average of 9.2% gross yield and 5.6% net return to investors after all costs, fees and corporation tax. This should make it ideal for those who want a long-term, income-producing investment backed by bricks and mortar.

The only real disadvantage to these investments is that the criteria of the corporate tenant we work can be very precise. It is time-consuming to find and convert properties according to their specifications and therefore we pay a premium for that.

The properties are treated and valued by surveyors as commercial properties. This means to achieve an uplift on a sale in the future, it will probably be necessary to sell the property to an investor, which undoubtedly limits the exit market; however, we believe high yielding properties with assured rental agreements in place will be attractive to many prospective investor purchasers.

Click here for a detailed financial summary of all properties purchased to date

For those not familiar with the assured rental product, here are the important facts:

  • The properties are let as HMOs to a large corporation on a five-year assured rental agreement
  • The corporate tenant is responsible for all maintenance costs up to £5000 per year
  • There are no void periods
  • Rent is paid two months in arrears but to date has been paid on time every time
  • The properties produce a gross yield of 9-10%
  • The average net yield is 8.5%
  • The average net return to investors after all costs is 5.6%
  • Dividends are paid quarterly
  • All properties purchased to date have delivered returns as forecast

2017 Property Market Forecast

Is Buy to Let Dead?

The buy to let market in the UK really gained traction in 1996, with the opening of the mortgage market. This made property investment accessible to millions who had been previously prevented from seeking better returns through property, as opposed to the pitiful rates provided by their institutional pensions.

It proved immensely popular, and many people found the idea of property as a way to provide a retirement income preferable to putting their money in a traditional pension. However, over the last two years, these people have been ruthlessly stabbed in the back by the government who have crippled the ability of small landlords to make any sort of profit.

Not only has there been an increasing amount of red tape and financial burden placed upon landlords in recent years, but George Osbourne saw fit to increase stamp duty and, in an astonishingly cynical move, he decreed that landlords should be treated differently than every other type of UK business and would not be able to offset loan interest payments against revenue.

What this means for the large majority of landlords who have mortgages and do not operate under a limited company structure, is that they will incur heavy losses and could potentially be forced into bankruptcy, as their increased tax bill exceeds their rental income. What’s worse is that research indicates only a small percentage of landlords are aware of this cataclysmic change and the effect it will have.

It seems clear to me that the traditional way of investing in buy to let property that has thrived over the last 20 years is, as far as most people are concerned, no longer an option. Property, however, is destined to remain the nation’s favourite asset class but the types of property, and the way people invest in it need to change.

We, at The House Crowd, find the Government’s attack on, and lack of concern for small landlords, utterly reprehensible, but fortunately, we are in a position to help. Crowdfunding and peer to peer secured lending, have emerged as very popular ways people can build their wealth through property. Given the legal and tax changes, they now seem set to replace traditional buy to let as the best and perhaps the only way, ordinary investors can still benefit from direct property investment.

If you want a longer-term investment, secured with the ownership of real bricks and mortar, we have a steady stream of properties with assured rental – thus removing many of the risks and variables associated with property investment. These properties also produce a very decent return – a gross yield of 9.5% which should produce a net return to investors of at least 5.5% after all fees and costs. Investors will also benefit from any capital growth on sale.

So whilst buy to let may not be completely dead, it will really only be viable, after April 2017, when the tax changes take effect, via a company structure and payment of large deposits or through crowdfunding platforms.

What Will Replace Buy to Let?

Buy to let may have been killed off but the PRS (Private Rental Sector) has grown apace over the last few years, with property funds and other institutional investors pouring money into the sector. PRS, for those unfamiliar with the term, generally refers to purpose built blocks owned by institutions – generally with a high standard of communal facilities designed to attract and keep tenants long term.

The government is also now throwing its support behind PRS and the build-to-rent sector with large urban developments being financed by institutional funds and managed by large companies to cater for Generation Rent. For example, the government has announced that £45 million of its new £3 billion Home Building Fund will go towards kick-starting a deal involving 2,000 new build-to-rent homes. This includes 995 new purpose built units in Manchester, currently the city with the UK’s highest yields. Combined with the recent attacks on buy to let, it is likely that this will consolidate build-to-rent as the future of rented living and property investment in Britain.

Given the scale of the developments, and the money required to finance them, it is clearly not something readily accessible to individual investors. And, here again, is where crowdfunding comes into its own.

The House Crowd is ideally placed to help those people who are seeking a lower risk, longer term investment with build-to-rent. We are currently financing the building of over 100 units in the Manchester area and, whilst most have been built to sell, we will be introducing build-to-rent developments shortly with the intention of providing our investors with the ability to earn a steady annual return with the upside of long-term capital growth. Being a part owner of larger developments will also help mitigate risk.

We are, in effect, giving the individual investor, the opportunity to benefit from the growth of the build-to-rent sector and earn returns on par with institutional investors.

Best Places to Invest In 2017

It will come as no surprise to learn that I think Greater Manchester is the best place to invest, and I am not the only one, as many pieces of research forecast the same.

It’s not difficult to see why – Manchester offers the ideal combination of high yields and decent capital growth, something that London cannot. Predictions are that rents will increase by 5% in 2017, with capital appreciation to reach 4-5%.

The city has benefited from successive governments’ attempts to invest more money outside of London. Thousands of overseas students now come to Manchester each year, and it has fast established itself as an international talent pool with a booming rental population.

Manchester’s reputation as a property hotspot was recently reaffirmed by research from Lambert Smith Hampton, which revealed that 68% of property investors see it as the best place to invest.

I also see Stockport, in Greater Manchester, as a particularly strong area and think it should be at the top of the list for any investor hoping to achieve strong, consistent returns through property. Seven miles south-east of Manchester city centre and eight miles from Manchester Airport, the commuter town boasts direct rail services to Manchester, Liverpool, Birmingham and London. With a £42 million transport interchange under construction and £1 billion being invested across retail, residential and commercial sectors over the next five years, Stockport is establishing itself as a regional business hub.

Over the past year, property prices in Stockport have increased by 15.9%, and 1,100 new homes will be built over the next five years to cope with increasing demand. Properties in the area offer investors strong, consistent yields – a safer bet than relying on speculative capital growth.

http://www.manchestereveningnews.co.uk/news/local-news/timetable-1bn-regeneration-stockport-revealed-12292326

Reasons to Invest With The House Crowd in 2017

  • Specialists in Greater Manchester property – forecast by many experts to be the best area to invest
  • We offer traditional high yielding properties with assured rental
  • With over 100 new build properties either completed or in development, we are committed (in our own small way) to helping build the houses Britain needs
  • We are ideally placed to capitalise on both build to sell and the build to rent sector – which, backed by the government, is believed to be the future of the rental market
  • We enable access to individuals to participate in large scale developments investments with security and returns on par with those institutional funds receive
  • Choice: we offer
    • Short-term fixed-rate debt investments for those who want high returns and liquidity,
    • Longer term equity investments where investors share in both income and capital growth
  • No borrowing on property purchases means lower level of risk and less vulnerability to fluctuations in interest rates
  • Crowdfunding provides perhaps the only viable option for most people to continue to invest in property

View our Property Investments