Four Types of Low Cost Property Investment
Four types of low cost property investment
At The House Crowd, we want to make investing more accessible. Period. It’s a simple fact that investing in property can lead to high returns, but many people believe that the only way to reap those profits is to walk in with a large amount of capital. At The House Crowd, we know that is not the case. In fact, the average person can get involved in low cost property investment at a much lower entry point than you might expect.
We’ve cracked a smarter way to invest. A lower minimum investment, more security, and consistent, reliable returns. If you’re thinking about getting your feet wet, consider these three types of low cost property investment.
Secured Peer to Peer Lending
An investment of just £1,000 opens the door to our hassle-free and diverse range of secured peer to peer lending options. With consistent, stable annual returns of 9.2% p.a*., our peer to peer lending platform is an excellent means through which to grow your investment without needing a large commitment of capital or any expert knowledge of investing. Our team can get you started by connecting your investing power to peer to peer bridging loans made to home buyers, all of which are secured by the underlying value of the property. We have lent over £48 million and had zero capital losses to date*. You can trust us to help you surpass the unreliable and often paltry returns of more traditional options.
*Average returns based on bridging loan portfolio 2016-2018 (Average returns by year: (2016 = 8.8% p.a., 2017 = 9.7% p.a., 2018 = 8.9% p.a.). Remember, past performance is not a reliable indicator of future performance.
Innovative Finance ISA
Another excellent low cost property investment option is a peer to peer, property-based Innovative Finance ISA (IFISA). Whether you already have an ISA, or you want to start a new one, the IFISA is definitely worth considering. With our IFISA, for a minimum investment of £1,000 and a three-year commitment, you can begin earning 7%* p.a. tax-free. If you like what you’re getting, we can accept investments of up to £20,000. What makes our IFISA an attractive option? We diversify your investment as much as practicably possible across our portfolio of secured peer to peer loans. By spreading out your investments, we offer you more security backed up by the land registry and a stable return. This option offers security combined with interest calculated every day of the year (to be paid out twice a year or compounded over the longer term).
*Rate not guaranteed.
Property Development Investment
Looking for a higher annual return than 7% p.a.? The House Crowd has over 200 development projects in the North West where your investment can earn a cool 10% p.a. on average. Our properties are crowdfunded, and the lack of bank financing means that legal charges over the properties are held by you and other investors. This option is a short-term investment with zero capital losses to date (noting again that past performances is not a guide to future performance). With a minimum £1,000 investment, you can get involved in property development investment with less capital outlay than is required in traditional models.
We are committed to helping people climb up the housing ladder. For us that means that each of our development projects has expertise, research, and oversight. From our experienced contractors to our local experts, The House Crowd does its best to fully ensure that the project – and therefore your investment – is a success. Our simple investor dashboard also allows you to keep track of our progress as well as access any relevant documentation. For more information, you can contact us and check out some of our emerging properties.
As you can see, there are several low cost property investment options for everyday investors. With the introduction of peer to peer lending and innovations around crowdfunding, the ticket price is much lower. All of our services require just a £1,000 investment and we have consistently delivered excellent returns for our clients. Whether you want a short-term investment or steady interest, there’s a simple, low-cost option for you.