Wales Online: “This new Welsh startup lets you invest in property from just £100”
Wales Online introduction article to property crowdfunding startup ShareProperty
Cardiff-based ShareProperty is aiming to provide both aspiring and experienced investors with quick and easy access to the online property investments market.
The crowdfunding platform enables users to invest from as little as £100 in return for an equity stake in the investment(s) of their choice.
Users of the service will have access to a range of investment opportunities and will be able to invest in either newly listed properties that the company has recently negotiated an option to buy; or via the secondary resale exchange, where other investors have decided to sell shares previously purchased through the platform.
The fact that the minimum investment is just £100 means that those who can only afford to invest small amounts of money can still have a chance to invest in property.
The concept of crowdfunding allows a large number of investors to pool their resources to buy an asset and up until recently had been used largely to fund early stage businesses.
Catering not only for investors, but also individuals and companies looking to raise funds through the platform, ShareProperty is now applying the crowdfunding model to the property market; which chairman Tim Linacre believes will give opportunities to both investors and developers that they would not have otherwise had.
He said: “ShareProperty gives the opportunity to all investors to get exposure to the property market in South Wales, combining an attractive income yield and capital appreciation.
“No longer is this market just the preserve of institutional investors, ShareProperty makes it available for everyone.”
Glyn Trott, non-executive director said: “Classic property investment needs immense amount of drive, cash deposit and continued looking after and managing.
“What ShareProperty brings potential property investors is the bite size ability to own part of an investment property, and for developers/seasoned landlords crowd funding with some shared ownership to get a project off the ground.”
What sorts of sums could someone investing £100 expect to see returned?
Returns will vary by project, but co-founder David Rees says the company typically looks for a net estimated annual return to its investors of at least 6%.
All investments are property asset-backed and, as an appointed representative of an authorised and regulated FCA firm, they are obliged to carry out a thorough investment appraisal.
Infact, over 90% of the property deals presented to ShareProperty do not meet its due diligence criteria, which for investors, could only be a good thing.
How long could it be before someone can expect to see a return?
Initial investments are within the Buy to Let sector; therefore, investors can expect to receive dividend income immediately following funding completion.
All sites should be pre-tenanted, and often come with rent guarantees ensuring good visibility on income. Capital gains are expected to accrue on investments and they can provide the option of either selling your shares before the end of the investment term or waiting for investment maturity.
Will investors get to choose the properties they invest in?
Yes. Rather than real estate investment trusts or property funds, investors will directly select the properties they wish to invest in. The platform will offer a range of risk, return and investment periods, allowing the investor to match their investment profile with the relevant projects.
George Grigg, CEO, tech-entrepreneur and fellow co-founder also comments:
‘People are unaware of just how many alternative investment opportunities are now out there. The technology is available and businesses are starting to really accelerate their application to relevant market sectors. The potential is a sophisticated, end-to-end investment, research, and management system for the property investment market in every living room in the country”
For more information on ShareProperty and how you can invest in or raise funds for, a property project, visit shareproperty.co.uk