June Peer To Peer & Development Performance Stats

June 2017 Summary P2P & Development Stats

June 2017 summary and monthly statistics can be seen below for our P2P and development loans.

Bridging Loans 30/06/2017
  Net
Total Amount Lent £19,956,670
Total Returns Paid £592,835
No of Loans 61
No of Loans Repaid 19
Average Loan Period 9
Investor Capital Lost 0%
Average Loan Size £325,072
Average Loan to Value 69%
Average Interest Rate Paid 8.94%

 

Development Loans 30/06/2017
  Net
Total Amount Lent £11,960,571
Total Returns Paid £146,212
No of Loans 18
No of Loans Repaid 6
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £664,476
Average Loan to Value N/A
Average Interest Rate Paid 9.74%

You can find all our latest investments by clicking here.


View our Property Investments

May Peer To Peer & Development Performance Stats

May 2017 Summary P2P & Development Stats

May 2017 summary and monthly statistics can be seen below.

Bridging Loans 30/05/2017
  Net
Total Amount Lent £18,816,670
Total Returns Paid £592,835
No of Loans 52
No of Loans Repaid 19
Average Loan Period 9
Investor Capital Lost 0%
Average Loan Size £358,721
Average Loan to Value 70%
Average Interest Rate Paid 8.94%

 

Development Loans 30/05/2017
  Net
Total Amount Lent £11,960,571
Total Returns Paid £146,212
No of Loans 18
No of Loans Repaid 6
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £664,476
Average Loan to Value N/A
Average Interest Rate Paid 9.74%

You can find all our latest investments by clicking here.


View our Property Investments

General Election: The 2017 Housing Manifesto Of The 3 Major Parties

General Election: The 2017 Housing Manifesto Of The 3 Major Parties

So, the General Election is looming. On 8th June, we face the decision of whether to carry on along the path of ‘strong and stable leadership’ promised by the Tories, or gamble on the prospect of the unknown – a Labour candidate who looks nothing like the party face we’ve been used to over the last two decades. Then there’s the Lib Dems, UKIP, or the Greens: of which there is much less to say.

But for investors in The House Crowd, the principal focus will be the housing policy offered by each of the major political parties. So, just to save you trawling through the party manifestos, we’ve done the dirty work for you. Here’s what you need to know about the 2017 housing manifesto for the Conservatives, Labour, and Lib Dems. Just an FYI – at time of writing, the Greens and UKIP are still yet to publish their manifestos.

Conservative Party 2017 Housing Manifesto 

The ‘Homes For All’ section of the Tory manifesto begins with a comment that states the blinking obvious: ‘We have not built enough homes in this country for generations, and buying or renting a home has become increasingly unaffordable’. So how do they plan to fix it?

The key, they state, is to build enough homes to meet demand. Again, pretty obvious. They identify that the effect of this would be to slow the rise in housing costs, allowing more ‘ordinary, working families’ to buy a home and also to bring down the cost of renting. Crucially, for investors, this will ensure that more private capital is invested in more productive investment, thus hastening economic growth in a secure way for the future.

The Tory manifesto pledges the delivery of one million homes by the end of 2020, with half a million more by 2022. They promise to deliver on the reforms from their Housing White Paper, freeing up more land for new builds in the ‘right places’, encouraging modern methods of construction, and by giving councils the power to intervene where developers do not act on their planning permissions. The Tories will also diversify who builds homes in the UK.

The plan also includes the building of better homes, supporting ‘high-quality, high-density’ mansion blocks, mews houses and terraced streets. And all this whilst retaining the strong protections that currently exist over designated Green Belt, National Parks, and Areas of Outstanding National Beauty. Thus, the government must build 160,000 houses on its own land, and rebalancing housing growth across the country – not limiting it to the south-east.

Housing for older people is also a priority, so the Tories plan to help housing associations increase their specialist housing stock.

The manifesto identifies councils as being to blame for the failure to build sustainable, integrated communities, fingering them as the ‘worst offenders’ and accusing them of building ‘for political gain rather than for social purpose’. The Tories plan to enter into new Council Housing Deal with ambitious, pro-development local authorities to assist them with building more social housing. ‘We will work with them,’ they say. ‘To improve their capability and capacity to develop more good homes, as well as providing them with significant low-cost capital funding’. As a result, they plan to build new, fixed-term social houses, which will ‘be sold privately after ten to fifteen years with an automatic Right to Buy for tenants’, the proceeds of which will be recycled into further homes. Compulsory Purchase Orders will be reformed, reducing cost and difficulty for councils to use, making it easier to determine sites’ true market value.

Finally, the Conservative 2017 housing manifesto pledges to work with private and public sector house builders to capture the increase in land value created when they build to reinvest in local infrastructure, essential services and further housing, making it more certain that public sector landowners benefit from the increase in land value expected from urban regeneration and development.

Labour Party 2017 Housing Manifesto

Labour have titled the 2017 Housing manifesto section of their election manifesto ‘Secure Homes for All’. It also begins by outlining the housing crisis, and pointing the finger at the Tories for failing to fix the housing crisis in the last seven years, stating that ‘Since 2010, housebuilding has fallen to its lowest level since the 1920s… rents have risen faster than incomes, there are almost 200,000 fewer homeowners, and new affordable housebuilding is at a 24-year low’.

Labour’s solution? Investing in building over a million new homes – 100,000 council and housing association homes a year by the end of the next Parliament.

Their plan for a new Department of Housing is ostensibly to ‘ensure housing is about homes for the many, not investment opportunities for the few’. We wonder whether they know about the democratising power of property crowdfunding in this area… and whether they plan to invest in the innovative finance model for real estate at all.

Whilst the Tories accuse local councils of building ‘for political gain rather than for social purpose’, Labour plans to give councils new powers to build homes. They plan to begin the biggest council building program for at least 30 years, ditching the Tories’ ban on long-term council tenancies so that council tenants can have a ‘secure tenancy in a home built to high standards’. The ‘right-to-buy’ policy would be suspended in order to protect affordable housing for local people, unless councils can prove they have a plan to replace homes sold like-for-like.

To avoid urban sprawl, Labour promises to start work on a new generation of ‘New Towns’ to build the homes needed, prioritising building on brownfield sites and – like the Tories – protecting Green Belt land.

The priority, of course, for Labour, is to build new council funds through their National Transformation Fund, which – they say – will ensure a ‘vibrant construction sector with a skilled workforce and rights at work’.

Along with all those council houses, Labour will also build thousands of low-cost homes specifically reserved for first-time buyers, giving local people buying their first home ‘first dibs’ on new homes built in their area. Labour councils across the country, they say, have already been building an average of nearly 1,000 more new homes than Conservative councils.

Just as the Tories do, Labour pledges to ‘not only build more, [but to] build better’. More homes will be insulated, and new modern standards for building ‘zero carbon homes’ will be implemented. Equally, the party plans to consult on new rules on minimum space standards, and introduce new minimum standards to ensure properties are ‘fit for human habitation’ and ‘empowering tenants to take action if their rented homes are substandard’. Like the Tories, Labour also identifies the need for older people’s housing, ‘ensuring that local plans’ address this need. There’s also their predictable promise to ‘reverse the cruel decision’ to abolish housing benefit for 18-21 year olds, a controversial move by the Tories that has had many up in arms.

Controls on rent rises, more secure tenancies, landlord licensing and new consumer rights for renters are all promised. They also promise an inflation cap on rent rises, and to make three-year tenancies the norm. They equally state that they’ll legislate to ban letting agent fees for tenants – which seems a slightly odd statement considering this is already in the pipeline.

Liberal Democrat Party 2017 Housing Manifesto

In the same vein as the two major political parties, the Lib Dems, too, begin their 2017 Housing manifesto section with the (not-so) news that the ‘housing crisis in Britain has become an emergency’. Their figures for increasing the rate of housebuilding are to double the current level to 300,000 new homes a year.

Rather kindly, the Lib Dems have broken their housing pledge down into bullet points, which makes it rather easier to share verbatim:

We will:

  • Directly build homes to fill the gap left by the market, to reach our housebuilding target of 300,000 homes a year, through a government commissioning programme to build homes for sale and rent. We will ensure that half a million affordable, energy-efficient homes are built by the end of the parliament.
  • Create at least 10 new garden cities in England, providing tens of thousands of high-quality, zero-carbon homes, with gardens and shared green space, jobs, schools and public transport.
  • Set up a new government-backed British Housing and Infrastructure Development Bank with a remit including providing long-term capital for major new settlements and helping attract finance for major housebuilding projects.
  • End the Voluntary Right to Buy pilots that sell off housing association homes and the associated high value asset levy.
  • Lift the borrowing cap on local authorities and increase the borrowing capacity of housing associations so that they can build council and social housing.
  • Scrap exemptions on smaller housing development schemes from their obligation to provide affordable homes, and strengthen the hand of local government to prevent large developers reneging on their commitments.
  • Require local plans to take into account at least 15 years of future housing need – focusing on long-term development and community needs.
  • Create a community right of appeal in cases where planning decisions go against the approved local plan.
  • Enable local authorities to: – Levy up to 200% council tax on second homes and ‘buy to leave empty’ investments from overseas. – Enforce housebuilding on unwanted public sector land. – Penalise excessive land-banking when builders with planning permission have failed to build after three years. – End the Right to Buy if they choose.
  • Help people who cannot afford a deposit by introducing a new Rent to Own model where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.
  • Improve renting by banning lettings fees for tenants, capping upfront deposits and increasing minimum standards in rented homes.
  • Help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time 62 Support Families and Communities 6 renters under 30.
  • Give British buyers a fair chance by stopping developers advertising homes abroad before they have been advertised in the UK.
  • Give tenants first refusal to buy the home they are renting from a landlord who decides to sell during the tenancy at the market rate according to an independent valuation.
  • Promote longer tenancies of three years or more with an inflation-linked annual rent increase built in, to give tenants security and limit rent hikes.
  • Improve protections against rogue landlords through mandatory licensing and allow access for tenants to the database of rogue landlords and property agents.
  • End the scandal of rough sleeping by increasing support for homelessness prevention and adequately funding age-appropriate emergency accommodation and supported housing, while ensuring that all local authorities have at least one provider of the Housing First model of provision for long-term, entrenched homeless people.

So that’s the top three parties covered. Clearly, there’s plenty to consider; lots of contrasts, but equally lots of crossover between opposing parties. Who’s getting your vote on 8th June? Actually, don’t answer that – no one wants to deal with another war in the Comments section on Facebook… there’s too many of those out there already.

April Peer To Peer & Development Performance Stats

April 2017 Summary P2P & Development Stats

April 2017 summary and monthly statistics can be seen below.

Bridging Loans 30/04/2017
  Net
Total Amount Lent £15,590,670
Total Returns Paid £592,835
No of Loans 44
No of Loans Repaid 19
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £339,606
Average Loan to Value 70%
Average Interest Rate Paid 8.94%

 

Development Loans 30/04/2017
  Net
Total Amount Lent £11,010,571
Total Returns Paid £146,212
No of Loans 17
No of Loans Repaid 6
Average Loan Period 10
Investor Capital Lost 0%
Average Loan Size £647,681
Average Loan to Value N/A
Average Interest Rate Paid 9.74%

You can find all our latest investments by clicking here.


View our Property Investments

March 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.