The new way to invest in property makes buy to let better and more accessible for all.
British investors have a centuries old affection for property. Bricks and mortar are arguably the most tangible, and best understood, asset class of all. But while many of us might aspire to become buy to let landlords, the costs, hard work and red tape involved have, until now, put off all but the truly committed and relatively wealthy. These days, the challenges and complexity of the process make it much like starting a business. Managing tenants and maintaining properties is time-consuming and stressful. But all this is changing fast as the crowdfunding revolution comes to the property sector.
A MORE DEMOCRATIC WAY TO INVEST
Property Partner is a platform that enables anyone to buy shares in residential property at the click of a button, without the hassle of mortgages, solicitors or maintenance.
Shareholders receive rental income each month in the form of dividends, and can realise capital gains if the property rises in value. The letting and management is carried out by professional agents on behalf of investors so there are no late night calls about dripping taps to deal with.
To date, Property Partner has funded over 300 UK properties, making it easy for investors to spread their risk by diversifying their portfolio. Founded in 2014, the FCA regulated platform is producing a current estimated return of 8%* per year, after fees.
This performance has attracted over 9,100 individual investors, 73% of whom have bought shares in multiple properties. There’s also reassurance in the way the assets are owned.
Each property investment is held in a limited company called a Special Purpose Vehicle (SPV). This means it is totally ring-fenced from the assets and liabilities of Property Partner, and the other investments on the platform.
LIQUID BRICKS
Property Partner’s Resale market gives investors the opportunity to exit the market at a time and price of their choosing. Investors can realise capital returns by selling their shares on platform, and pocket 100 per cent of the proceeds, as there are no exit fees to pay. Over £10.5 million in shares have already been traded on this rapidly growing secondary market.
GETTING BRITAIN BUILDING
Investors aren’t the only ones to benefit from the Property Partner model. By providing much-needed cash-flow to small developers, the company is also doing its bit to boost housing supply. In one example, Property Partner bought four newbuild homes from a local developer in East Sussex, freeing him up to move onto his next project – and providing an investment opportunity that was crowdfunded in just 28 minutes.
But these properties aren’t just investments, they’re also people’s homes. For Property Partner, tenants are just as important as investors. That’s why it sets fair rents, fixes problems quickly and invests in upgrading its estate – because good landlords make good returns.
PEDIGREE AND POTENTIAL
Property Partner might offer a new way to invest in property, but as well as being regulated by the FCA and audited by KPMG, it has some of the bestknown and most established names in property, technology and finance standing behind it.
Their director of property, Robert Weaver, is one of the most accomplished and respected residential property professionals in the UK. As former global director of residential property at the Royal Bank of Scotland, he’s an expert at handpicking properties that outperform for investors.
It’s board of directors includes Ed Wray, co-founder of Betfair, and Neil Rimer, co-founder of the global venture capital firm Index Ventures, who has invested in market-defining companies across the technology and finance sector, including Funding Circle and TransferWise. Property Partner’s own aspirations are no less ambitious. Soon its investors will be able to choose from properties all over the UK, Europe and beyond and the ultimate aim is to create a global stock exchange for residential property.
PROPERTY PARTNER PERFORMANCE
Current estimated return of
8%* per year
after fees
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£44 million
invested to date
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£950k
paid out in dividends
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£10.5 million
traded on it’s resale market
LOVE INVESTING IN PROPERTY
30 year old Dave Love, and yes, that is his real name, has fallen for Property Partner. The security and risk analyst from Hampshire had been thinking of becoming a buy to let landlord, but was put off by the prospect of having to find the right property, and then look after maintenance and tenants. Instead he chose Property Partner, spreading his risk by investing smaller amounts across more than a dozen properties.
He explains: ‘With Property Partner, I had access to the central London property market, which I never would have been able to afford on my own, and I could spread my risk across multiple properties. Plus all the research was done for me and I don’t have to deal with tenants.’ Dave is also motivated by the returns, both in the short term from rental income, and in the longer run from potential capital growth. He has already realised several thousand pounds’ worth of capital growth on an initial £25,000 investment, by selling some of his shares on the Property Partner resale market.
CAPITAL AT RISK
The value of your investment can go down as well as up. Forecasts are not a reliable indicator of future performance. Gross rent and dividends may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Financial promotion by London House Exchange Limited (8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). *Properties on our platform have, on average, after all fees and before personal taxation, delivered an estimated annualised total return of over 8%; including approximately 3% net rental income (dividends) and 5% in capital value growth. These estimated returns are calculated quarterly and (i) with reference to the average dividend yields and price movements of all previous listings, (ii) spreading over 5 years any purchase discount to the RICS valuation, and (iii) assuming the property remains tenanted. We are champions of transparency and you can download the objective data used to calculate this estimated return on the website.
