A new crowdfunding platform has been launched that enables people to invest in individual and residential properties in the same way that they can invest in company stocks.
Investors will receive a monthly rental income and benefit from any capital growth, in direct proportion to their ownership.
Property Partner works by identifying locations and individual properties that are likely to be attractive to investors and then lists each property on its platform with the resources prospective investors need to arrive at an informed decision.
After a period of five years, the platform also gives everyone the option to exit at market value, including the investor who put the least amount of money into the property. It lets investors offer their property holdings for sale via a designated secondary market.
Property Partner’s fee structure comprises of a one-off transaction fee of 2 per cent on the purchase of investment and an industry standard rate of 12.5 per cent of rental income for advertising, letting and managing the property.
Its launch follows £1.25m of seed funding from Octopus Investments, Alchemy Partners and Better Capital founder Jon Moulton, and Ed Wray, co-founder of Betfair and director of Funding Circle.
Robert Weaver is also joining Property Partner as director of property. He was formerly global director of residential investment at the Royal Bank of Scotland.
Daniel Gandesha, chief executive of Property Partner, said: “Time and time again I wanted to invest in residential property in a particular area. I would see nice coffee shops starting to pop up, steady increases in the number of estate agents setting up shop, regeneration plans being approved – but still didn’t make the step.
“The reality is that buying a residential investment property is more like starting a business than making a simple investment.
He added: “We’ve overcome significant financial, regulatory and technical challenges to make this a reality and the strong demand for our first property reinforces my belief that we have built something investors really want.”