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What are ‘shares’ in a property?

Instead of selling individual bricks of a property (which can get a bit cumbersome) we use something called a Special Purpose Vehicle (SPV).

An SPV is a limited company that you buy shares in when you invest with UOWN. Each property we offer is put into its own SPV, so lots of people can buy shares in it and become shareholders. So technically, your shares are in the SPV and the SPV owns the property.

SPVs allow lots of people to invest in a single property

There are lots of advantages to working this way, but fundamentally, it is crucial to a property crowdfunding vehicle to work via an SPV. That is because normally a house can only have four names on the deed title. That’s no good when there are hundreds of UOWNers who come and go (imagine the paperwork...). So instead we form a new SPV each time we offer a property for investment.

For you the investor, creating an SPV and investing in it offers you easy access into property investment that otherwise may not be possible. Having an SPV allows for lower investment minimums, so basically investors can invest a small amount in property, and that might not be possible if we did it any other way.

Secondly, investing in a share of an SPV rather than a whole property restricts the amount of liability you are open to. Essentially, your personal liability and risk of losses is limited to the percentage share of ownership you have.

The percentage shares you own then represent the percentage share of returns you receive, i.e. in monthly rental income and capital appreciation when a property is sold at profit.

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