Crowdfunding cradles baby boomers

The “baby boomers” generation is taking the property investments market by storm and with the new changes being made to the pension pot, we can see this generation of investors dominating the industry.

Those who were born during the 1946 and 1964 (post-World War II) are known as the baby boomers, and these are the folk who will be entering retirement over the next few years. Like many other people, a large proportion of the baby boomers have lost their investment due to the financial crisis, which resulted in a drop in capital and equity. Property investments however, have remained strong considering the fluctuating housing costs, but it is still important that investors make the right decision when investing their money. Therefore, baby boomers need to understand that there are other beneficial ways of investing their money and getting involved with property investments; crowdfunding being one of them.

There is a remedy for baby boomers who are recovering from an investment loss due to the financial crisis and that’s through property investments. As we mentioned earlier, the property investments marketing or buy-to-let as it’s more commonly known, still remains strong with high returns. It’s a stable market that can help recover money that has been previously lost, whilst encouraging another form of income, especially when they reach the retirement stage.

Adding crowdfunding into the mix is just another advantage to property investments and it’s become a world phenomenon. Investors from all over the world are opting for the crowdfunding option for property investments, which enables them to connect with real estate developers and managers without the need to consult an intermediary first. Or in other words, crowdfunding has booted the middle man out of the equation from property investments. Plus, crowdfunding encourages higher returns, which means a stable and more prominent additional source of income.

Of course it’s not just baby boomers that can benefit from crowdfunding and property investments, all generations can. But with the new pension pot entering the surface in April 2015, it just makes baby boomers, crowdfunding and property investments just that bit more appealing.

Back to the Future

Now that we’re in 2015, we’re waiting for the Back to the Future Part II’s predictions to come into play and when we say some, we’re referring to flying cars and futuristic hoverboards. Imagine how much easier it would be to get to work? You could avoid the dreaded traffic jams during rush hour and rest your little legs if you have to walk to work. Property crowdfunding wasn’t in the mix, but we thought of that one and we bet Doc Brown and Marty McFly are kicking themselves!

Doc Brown and Marty McFly did however get a few predictions right and they are things that we probably can’t live without today including video calling, tablet computers, microwavable meals and having a connected home – wireless internet. Well we probably could, but psychology, we can’t. We live in a world where we rely heavily on the online world, which isn’t a bad thing; we just need to remember that there is a whole world out there that is filled with opportunities, including property crowdfunding.

The House Crowd have revolutionised how us folk involve ourselves with property investments and we’ve made it easier for people to climb the property ladder, and more importantly, given everyone the opportunity to invest via property crowdfunding. We have a free information pack available online, which you can download. It will have all the information you need to understand how property crowdfunding works. You can also register online and stay up to date with all of the latest news from The House Crowd, and be the first to know about our latest property investments.


A rise in Silver Landlords

The number of “Silver Landlords” investing in housing properties is increasing by the day and The House Crowd has also witnessed a growth in older adults registering with our crowdfunding property investments projects.

Recent research from Direct Line for Business has indicated that 32% of adults aged 45 to 64 would consider using a proportion of their pension pot, if not the whole lot, to invest in a buy-to-let property across the UK. This is due to those looking to retire and pensioners having more access to their pension pot, resulting in more control of their money.

The property investments market is growing in popularity and with property prices and rent costs rising; it’s understandable why people are looking to invest their money in this area to receive high returns. It aids in providing regular income and capital appreciation, therefore, setting up a net for the future. Survey results also highlighted that;

  • 45% of silver landlords would consider property investments for regular income,
  • 23% would see it as a security of investment,
  • 17% would accept capital appreciation,
  • 9% would leave it as inheritance for their loved ones.

From April 2015, more access will be made available for pensioners and those looking to retire.

So if you are looking to join the silver landlords or you’re looking for ways to spend your pension money in the future, then considering property investments with The House Crowd is a wise decision to make.

Will you be adding to your property investments portfolio in 2015?

Property Wire has uncovered some interesting information regarding property investments. Research showed that 52% of HMO landlords propose on adding to their portfolios in 2015, this is in comparison to 23% landlords involved with property investments. This is because of the increase in interest rates next year, which becomes an issue when you are pushing for income on your property portfolio.

As it stands, the majority of the property investments have a gross field of below 7% attached to it. However, with the increase in house prices putting its brakes on, it’s caused capital growth to become unpredictable and unreliable. It’s natural that different housing locations will offer a higher growth rate due to things such as transport links and employment opportunities. Fortunately for you, The House Crowd operates mainly in Manchester and other major cities, so you can expect a healthy annual gross return.

The increase in interest rates will show a significant decrease in their margins after buy-to-let investors have enjoying low interest rates.

It will be interesting to see what 2015 brings to the world of property investments and although you might not be able to rely on interest rates, you can rely on The House Crowd.

Autumn Statement slashes tax for home-buyers

George Osborne announced in his recent Autumn Statement that the majority of homeowners will benefit from the economic changes, in part, offering some relief to home-buyers. These new rules will come into effect from midnight on 4th December 2014.

As it stands now, current homebuyers who own a house between the values of £125,000 to £250,000 pay a 1% tax, and those owning a home valued at £250,001 to £500,000 pay 3% tax. George Osborne claimed that the current system is “badly designed” and fails to meet the needs for existing home-buyers. The new costs that will Osborne will put in place will in turn reduce costs of buying a home for around 98% of buyers, which we think is fabulous. The House Crowd are always looking for ways to help buyers invest in a property – hence our crowdfunding platform – and with the new measurements put in place for home-buyers, it looks like it could benefit buy-to-let too.

The overall tax cut will be £800 million per year and would save home-buyers an average of £275,000 from £4,500. Plus it also means those who are lucky enough to own a home that is valued at £937,000 or more will be the folk who see their bills increase. Sorry footballers!

George Osborne said “The system I introduce today replaces a badly designed system that has distorted our housing market for decades. It reduces the stamp taxes for 98% of people who pay them in this country. It increases the taxes on the most expensive 2% of homes, but only asks people to pay that tax when they buy the house and they have the money”.

But don’t worry if you’re a homebuyer who has already exchanged contracts on a property and haven’t yet paid Stamp Duty, but have completed the purchase on your home on or after 4th December 2014, as you will have the option on whether or not to apply the old or new rules. Sounds a little complicated doesn’t it?

In a nut shell, the new rules will benefit those living in properties under the value of £937,000, which means it will also benefit those looking for investment properties.

The House Crowd will keep an eye on how Mr Osborne’s new rules come along, but in the meantime, feel free to get in touch with us today for more information about property investments and crowdfunding.


Things are looking up for buy-to-let

The property world is a tough one to step into. House prices are going up and mortgage lenders are making it difficult for home owners to take out a loan. For first time buyers, it can be a stressful process, but it shouldn’t have to be and if The House Crowd was the PM, we’d ensure that buying a house was as smooth as peanut butter without the crunchy bits. And we can know we can do it; you only have to look at our crowdfunding property investments portfolio to know this.

As it stands, it looks like buy-to-let is dominating the property market and there is now one in five homes in the UK that are owned by private landlords. It only seems to be getting more powerful, as latest statistics have pointed out that another million properties will be purchased within the next five years. It just goes to show that property investments are the best form of investment out there.

According to Paragon, a mortgage lender company, there are two million private landlords patrolling the UK who are renting out five million properties. As it stands, 18% of households rent from private landlords and this number is growing by the day.

Property investments have become a powerful source of income and profit making, and with crowdfunding thrown into the mix, you’ll be able to build your property portfolio and show others how easy and straight forward it is – well with The House Crowd anyway.

If you’re considering property investments, whether you’re a first timer or you already have a collection going, then how about contacting The House Crowd today? Crowdfunding is the simplest and smarter way to invest.

Going through the changes

The House Crowd are always looking for new changes to the way we do things, so you, our property investors receive the best possible service and a service that suits you. Now, if you didn’t receive the newsletter that we sent last week, you’ll have absolutely no idea what we’re talking about, so we thought (whilst gazing into the sun) that we’d sum up a few changes here and there.

We’ll get the boring part out the way – changes to the law and property market. As law abiding citizens, these changes in the law has meant that we need to alter the legal structure and the way we raise the money for new properties. Fortunately, The House Crowd has had the go head to operate a crowd funding platform until March 2016. But don’t worry; we’re working on extended this time frame.

The House Crowd will operate purely as a fundraising platform and the House Crowd Property Management Limited (our sister company) will be offering all investments. The property market has continued to increase their prices, which is inevitable, therefore, we must adapt too and our team are currently in the process of improving the returns and service we offer on our property investments.

What else has changed? Well, we have more choice to where the property investments are located and we’re not just talking Greater Manchester here. Oh no, we’re talking UK spread and even over the Atlantic Sea to far, far away! There will be more choice in our buy to let purchases, which will include student accommodation.

And there’s more…

We have new property investments options, which are the profit share model – the joint venture model where all profits are shared; and an income only model – for those interested in achieving the highest fixed return as possible. There will also be an exit strategy, which means all property investments will include a minimum term investment, and at the end of the investment, we will provide you with a valuation and you can vote each year as to whether you want to sell at the given price.

The House Crowd will also have a brand new website very soon, we’re just waiting on one or two things to be finalised and then we will hit the live button!

So there you have it, a few changes to property investments. If you would like some more information, just get in touch with The House Crowd today.