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UOWN's Fees and Costs Explained

November 21, 2017

Fees

At UOWN we have two main fees:

UOWN Investment Breakdown
Fee Example for £100 investment in 57 Beechwood Mount.

2% transaction fee - this fee is charged when you invest into any property on UOWN, including properties on the resale market. For example if you invest £100 you will be charge a fee of £2.

0.5% Annual Fee (You may see this called the ‘SPV charge’) - this is an annual fee covers the ongoing admin costs of keeping UOWN awesome, property valuations and other exciting jobs like filing annual tax returns. The fee is calculated by taking 0.5% of the value of the property. For example the fee for 8 Eden Gardens, which is valued at £180,000, is £900. This fee is deducted from the gross rent and is split proportionately amongst all the investors in a property. For example if you had a £1000 (0.53%) share in 8 Eden Gardens your share of the Annual Fee would be 0.53% of £900 = £4.76.

So how do we compare to our competitors?

Comparison of Property Crowdfunding Industry Fees
Table comparing fees across the industry.

Costs

There are two main types of costs involved in investments on UOWN - the costs involved in the initial purchase of the property, and the ongoing costs which are taken from the rent. The initial purchasing costs are included in the share price, and the ongoing costs are deducted from the rent - in both cases the costs are handled seamlessly and will not involve you parting with any extra cash.

Initial Purchase Costs

UOWN Property Purchase Cost Breakdown
Example initial cost breakdown.

Ongoing Costs

UOWN Ongoing Costs Breakdown
Example ongoing cost breakdown.

After costs are deducted from the 'Gross Rent' we get the 'Net Rent', and this is used to calculate the Net Yield Percentage. The Net Yield Percentage provides and easy way to calculate the rent money you will receive after the costs and annual fee has been deducted from the rent. For example, the Net Yield for 57 Beechwood Mount is 7% - this means if you invest £1000 you will receive £70 of rent a year (figures accurate as of 15/11/17).