In recent years there has been a raft of changes aimed at taming the Buy-to-Let (BTL) market. These changes have pushed landlords to the limit and many have been forced to sell up as once profitable properties have now slipped into the red. Many who still want to remain in property are looking at other avenues where they can make similar returns but without the headache of being a hands on landlord.
One of these avenues is property crowdfunding: With strong net yields that rival even some of the best managed BTL properties, it is little wonder that some people are moving over to this model. So why should property crowdfunding be a big consideration for even the most seasoned BTL investor?
If you’re a BTL investor, or have been exploring purchasing an investment property, you may be looking to mortgage the property. - BTL mortgages require a minimum deposit of 25%, which based off of the average UK house price (£223,257 as of June 2017) is a whopping £55,814. Even on a much cheaper property the figure is still large. With the UOWN Property Crowdfunding Platform you are welcome to invest large sums if you have the money. However, if you don’t have the capital, you can start with much smaller amounts and get all of the same benefits of a BTL plus more.
If you do have the capital to invest into a single BTL property you may be aware of all the issues affecting your returns on that property. Everything from void periods to bad tenants can be seen very quickly in your bottom line. With property crowdfunding you can begin to take advantage of the benefits of diversification by spreading your risk across multiple properties rather than putting all of your eggs in one basket.
The true beauty of property crowdfunding is in it’s simplicity. You can invest into a range of properties with just a few clicks. With UOWN this is a huge advantage as we begin paying your rental income from the day you invest (so long as the property is tenanted) so your money starts making a return instantly. Buying a house currently takes on average 69 days, that is 69 days of searching, organising finance, being gazumped and not earning a single penny on your capital.
With UOWN sourcing, due diligence and management is all handled for you so that you don’t have to waste large amounts of your time finding the right properties. UOWN also ensures everything is in order, while giving you the chance to invest in geographies that may otherwise have been too difficult for you to consider.
With property crowdfunding, all of the management headaches you would have if you went down the BTL route just disappear. You can wave goodbye to worrying about insurance, deposits, maintenance or any of the new regulations that you must adhere to as a landlord. All of that grunt work is taken care of for you by the UOWN platform so you can get on with doing the important things in life.