Property investment in shared ownership or rent to buy arrangements does not need to be complex nor is it reliant on conventional interest-based investment vehicles, but it is for the high calibre property investor who perhaps wants something more than just a high-interest bank account, building society bond or stocks and shares broker experience.
Shared ownership property investments, also known as rent to own, rent to buy and even associated to buy to let, have become particularly popular in recent years because it cuts down any wastage of time or effort on behalf of the stakeholder. Why spend your time trawling through potential properties and enduring the hardships of purchasing and managing a rental property when you can have us do it all for you?
“The attraction of Shared ownership property investments is obvious for all to see, good reliable yield without the usual hassle that accompanies buy-to-let arrangements.”
This easy to follow guide shows the path of the property investor with CrowdToLive® and explains the journey your investment takes and the expectations in terms of returns.
Shared ownership can be funded by a single person (that could be you!) or by a group of people who decide to put some of their investment capital into property (a single property). Your investment creates a share in that property, it then earns dividend income from the rental returns paid by the tenant, and there is the potential, not a guarantee, for capital growth. Sounds simple right? Well, it is.
As a concept, multi ownership property investment isn’t particularly new or edgy either, arrangements akin to crowdfunding have been used for years where investors pool together to purchase property and then earn from rental arrangements. Our approach is a variation of the buy-to-let concept where property is purchased and also rented out for the rental income returns to be shared proportionally amongst the investors based on their shareholding.
Shared buy-to-let property investment stands out from these alternative arrangements because it uses a digital platform known as FinTech (Financial Technology) to facilitate transactions and management. The company providing the funding platform (CrowdToLive®) will seek and secure suitable properties for you, the investor and other similarly interested parties until the property is fully funded. This same platform not only identifies and secures a tenant, which is also a co-owner in the property, it also manages the property and collects rental agreements made. So there are no property management hassles for you, no rental collections to handle or tenant disputes to navigate.
All our properties also come tenanted with a 5-year Assured Shorthold Tenancy (AST).
The rental income collected is then paid out to investors in proportionate amounts to their investment minus any expenses, this in the form of a dividend, fantastic news for those who do not want interest-based investment vehicles. In essence, you own shares in a company that owns a property for which you have invested into, you do not need to own the property directly, but you still have the same exposure as a landlord.
Delivering the best possible returns that we can for your investment, while mitigating the risk, is our focus, we want to deliver on this whilst being unique and offering you, the investor, something different from other platforms available. We achieve this with several key features. Tenants, also known as “Champions” are required to pay a minimum 5% as a co-investment toward their chosen property, reassuring investors of their commitment to the agreement. Should they default on rental arrangements, their ownership will serve to pay any outstanding rental payment upon sale of the property. Our investor charging structure is straight forward too, with an initial transaction fee of 3% on the invested amount and management fee of 2% on collected rent. If the investor wants to sell his/her shares, we charge a 1% exit fee on the sale. Our investment model is also designed to manage unforeseen interruptions and smooth out dividend return.
You want to know your investment is in safe hands right? Well, you will be glad to know that CrowdToLive® which is a trading name under the Elite Capital and Management Services Limited (“Elite Capital”) is indeed regulated by the Financial Conduct Authority (reference: 822039).
We also have many years of accumulated experience, first established in 2016 as an investment FinTech platform we have become a leading authority in shared ownership property services in the UK.
CrowdToLive® now leads the way in providing debt-free property ownership which also offers an innovative way for people to access homeownership who might ordinarily struggle through conventional house ownership methods. In essence, it is an equity funding platform that brings crowds of investors and homeowners together in debt-free partnerships.
Great question. As mentioned previously, this type of investment vehicle is perhaps an alternative to a variety of traditional investment types with longer-term strategies. It would most likely suit those investors who would not require access to their capital at short notice and would have other more liquid investments/capital to utilise should the need arise.
Many similar platforms offer the opportunity to invest with similar vehicles but with small amounts, sometimes as little as £100 pooling with many, many other investors. That's not CrowdToLive®’s audience.
Instead we look for the more sophisticated investor, who perhaps doesn’t want to purchase a property for rental and managing all the associated headaches that come with direct tenant management but do want the exposure in the residential property market.
“CrowdToLive® now heads the way in providing debt-free property ownership which also offers an innovative way for people to access homeownership who might ordinarily struggle through conventional house ownership methods.”
Because of this we look for sophisticated and High Net Worth (HNW) investors who wish to invest £10,000 or more into their property portfolio. We aim to buy attractive properties for Champions (the tenant/part-owner) to rent which in turn aims to provide you with consistent dividend returns on your investment. The attraction of Shared ownership investments is obvious for all to see, good reliable yield without the usual hassle that accompanies buy-to-let investments.
Using your investor experience you will then have the ability to monitor the progress of your shared ownership property using our CrowdToLive® dashboard, this can be accessed from the comfort of your own home or office providing you with visibility and peace of mind, no waiting for annual investment statements to be issued, all available at the touch of a button.
As mentioned above, we have designed this product with a sophisticated investor in mind. Someone who understands different types of investment assets classes such as cash, bonds and equities and, where investing into the property market compliments this, someone who can invest over the longer term. Someone who may have other liquid assets available to them in case of emergency and is looking for a smart property investment vehicle to complement their existing investments.
Perhaps you are a professional looking for a convenient property investment product that removes the usual hassles of buy to let? Or, a HNW investor who is looking for something to compliment their other investment assets but gaining the benefits of the property market. If so, CrowdToLive® could be right for you!
The process is quite straight forward but includes some necessary checks that you might expect in a serious investment vehicle such as this.
We initially ask that you create an online account with us, this kick starts your journey as a community investor. We then carry out checks to ensure the source of your investment is within acceptable legislation and guidelines. Additionally, we conduct due diligence checks on the champions and the properties we select for rental.
Against your investment you will be issued with shares in a UK based company that will co own the property that you have chosen to invest into. All of our investment properties are owned by a separate company. Your shares will then provide you with indirect shared ownership of the property identified and will produce dividends after expenses and taxes through rent collected plus, ultimately benefit from any potential growth on the property asset as it matures in value.
Like many investments there are potential risks, property prices can go up as well as down, economies and markets can lose confidence or be affected by recession, maybe even a global pandemic can take place, anyone heard of Covid19!
Well, here at CrowdToLive® you will be pleased to know that we are constantly thinking about these factors and proactively doing what we can to positively navigate the effects of such events. Here are some ways we achieve this.
AML (anti-money laundering) and KYC (know your customer) are industry-standard checks to ensure due diligence is observed.
All you need to do now is create your account by clicking here, we look forward to working with you.