Crowdfunding for property development, particularly in the North and North West of England, allows you to invest in a lucrative market with potentially serious returns. So, what’s stopping more investors from getting involved?
For starters, there is a misplaced belief that it’s difficult to get started with property investment. Then there is the perception that it’s only for high net worth individuals and experienced investors who understand the finely balanced forces of the market. They don’t see enough options that offer a healthy ratio of risk and reward.
And crowdfunding? For some, that seems to just add to the complexity: they might know about it, but that doesn’t mean they know how to get involved with it.
But property development crowdfunding doesn’t have to be complicated. There are multiple ways to invest in property, and if you take the time to explore lending options with The House Crowd, you’ll reap the rewards.
*Capital at risk and rates are not guaranteed. Please read our important information page and risk warning before investing.
The House Crowd is a radically innovative organisation. Through crowdsourcing, investors can be exposed to higher returns in markets that had, traditionally been exclusive to institutional funds
L.Huerta - Twickenham
At a time of weak returns from most other investments and widespread scepticism as regards financial services providers, The House Crowd offers impressive returns with good security. It's a hassle-free way to invest in property, which is easy to understand and run by trustworthy, friendly people - what's not to like ?
J.Hoyle - Oldham
A simple and transparent way to get Involved in buy to let without the hassle of being landlord or needing a large deposit to get started
We make it easy. Simply follow these steps:
We try to ask as little of our investors as possible, but we maintain an active role in all projects. Through The House Crowd Developments – our development arm – we oversee all construction, and we only employ large, reputable contractors.
These contractors work on a fixed price basis and are penalised if they go over their agreed due date: the aim being to maximise the profitability of the property, and hence your return.
We don’t use banks to finance our projects. The House Crowd’s model is designed to maximise simplicity and minimise risk: investors’ loans are secured by a legal charge over the land and the property, and are the first to be paid out in the event of a successful sale. You are, in effect, the bank.
Also, we employ a fair and transparent order of repayment with YOUR capital our first priority. Investors are firstly repaid their capital, then interest is repaid separately. Each payment is made once a sufficient number of homes are sold. After investors are repaid their capital and interest, the developer takes a profit from remaining sales revenue.
There are several reasons to consider crowdfunding for property development as part of a diversified investment portfolio.
As mentioned, investors have first call on all profits – and these profits are often substantial and delivered quickly and reliably. Because properties are priced conservatively to try and encourage a quick sale, there’s often the opportunity to earn 10% p.a., limiting your financial exposure and ensuring that you see the results of your investment as soon as possible.
What’s more, because The House Crowd always offers a fixed rate of interest, it will accrue steadily during the term of the loan*. And a number of our properties are part of the government’s Help to Buy scheme, meaning your investment is helping someone, somewhere get their foot on the first rung of the property ladder. also have some reassurance in the knowledge that the underlying value of the borrower’s property underpins your investment, although obviously property values can fall which means your capital is at risk.
*Interest may be paid some time after your capital has been repaid. See individual literature for the relevant development loan for more details.
Since its 2012 launch, The House Crowd has earned a reputation for consistency and excellence: we’ve built and are currently developing over 200 properties, accumulating a gross development value in excess of £52 million.
As an FCA-regulated company, we’re committed to ensuring that your capital is allocated and managed safely and legally: we present all investment information accurately and follow strict guidelines to protect your investment – conducting extensive due diligence on every property and every borrower.
Open your House Crowd account today and receive a FREE investment guide, or contact one of our specialists to discuss your investing options.