How Can You invest in New Build Property?
Bricks and mortar investment is still popular – and for good reason. People want to invest in new build property because it’s the perfect balance of being tangible and lucrative. When done right, it can offer serious, long-term returns. However, many believe it’s not possible to invest in new build property. They feel it’s out of reach. There is a lingering perception that it’s only for high net worth individuals and experienced investors. Many assume that the only way you can invest in new build property is to finance a development by yourself, but the reality is that the property investment market has evolved. Nowadays, you can use platforms like The House Crowd to join a much bigger group of lenders and invest in new build property as part of a crowdfunded effort.
Invest in new build property via peer to peer development loans
Instead of buying a property outright and developing it on your own, it is now totally possible to invest in new build property by lending a fixed amount to help finance new property developments, whilst earning attractive returns. Property development investment with The House Crowd, for example, involves financing new build housing projects. Once full planning permission is in place for the development, large, reputable contractors are used and managed by The House Crowd, and the Royal Institute of Chartered Surveyors (RICS) provides regular site valuations. The House Crowd gives members the opportunity to enjoy the considerable profits that can be earned from property development – whilst removing many of the risks faced by small developers. However, as with most types of investments, your capital is at risk and returns are not guaranteed.
The House Crowd has the first legal charge on invested properties, which gives us the same type of security as banks demand when they finance a development. That means investors through The House Crowd have the first call on revenue generated by sales and are always paid out before the developer takes its profit. However, this does not mean that your money is as safe as putting it in a bank or building society because property prices can go down as well as up and your peer to peer investments are not protected by the Financial Services Compensation Scheme (FSCS).
As with peer to peer property lending, your investment is secured against the developer’s land and property. With this form of funding, you can expect up to 12% interest per annum over a relatively short loan period – 18 months, for example. You will be helping to solve Britain’s ongoing housing crisis whilst making great returns.
The House Crowd’s property development investments
Since we launched in 2012, we have earned a reputation for consistency and excellence: we’ve built and are currently developing over 200 properties, accumulating a gross development value in excess of £52 million. As an FCA-regulated company, we’re committed to ensuring that your capital is allocated and managed safely and legally: we present all investment information accurately and follow strict guidelines to protect your investment – conducting extensive due diligence on every property and every borrower.
In addition, if you are looking for property development finance for a future project, we are always looking to partner with experienced property developers and builders with a proven track record. The House Crowd is operated by real property experts who love what they do. If you want to make successful investments in property, invest through us.
If you’d like to speak to someone about investing in new build property, contact one of our specialists today.