Like the idea of investing in property but worried you don’t have the status or funds to buy into a lucrative deal? Then investing via a property crowdfunding company could be for you.
Property Crowdfunding Comparison Table:
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Tip: Scroll sideways on mobile devices to see all fields in the table.
There are a number of online platforms to choose from, but the ideology remains the same. It’s a relatively simple concept, a large number of investors (people just like you) come together to fund a property deal.
Investment amounts vary from investor to investor, and the property crowdfunding company manage the investment process from beginning to end (on your behalf).
Before you race off to invest, we suggest you check out what the various property crowdfunding platforms have to offer by reading a few online property crowdfunding reviews.
How Our Ratings Work
Our property crowdfunding reviews will provide an overview into the company you are interested in, and you can use the table to compare and contrast the different packages on offer, explore the fees charged by each platform, and check out how we rate each one in terms of service and performance.
We stay abreast of the latest developments in the industry, keeping a careful eye on what the property crowdfunding platforms are doing. We regularly update our reviews and the information featured in our comparison table.
We do all we can to include the newest information and ensure we have spot-on data for you. However, we do suggest you check the websites of the crowdfunding platforms – Brickowner, Property Partner and Loanpad for yourself (simply click on the tab to go to the website directly).
Here’s how the platforms we’ve reviewed stack up at-a-glance…
#1 – Property Partner (Our Rating = 9.5)
Purpose-built platform, Property Partner provides investors with the opportunity to buy into a multitude of property options, from student digs to commercial buildings and residential abodes.
Each investment opportunity has been carefully researched to check its credibility as a sound prospect. The team at Property Partner then negotiate a good deal and pass any savings on to you, the investor.
Investors can spread their funds, investing the amount they feel comfortable with and safe in the knowledge that all properties will be properly let and well looked after.
You receive returns in the form of quarterly or monthly dividends and when you are ready to exit the deal Property Partner help you out via their thriving Resale Market.
#2 – Brickowner (Our Rating = 9.4)
Relatively new to the UK property crowdfunding market, Brickowner brings together investors to supply the funds needed to back big property deals, with a focus on institutional investments. As an investor you are encouraged to build your own property portfolio.
You can buy a slice of a lucrative property deal for a minimum retail investment of just £100, and you can expect a return of approx. 8% up to a healthy 20% p.a.
Brickowner only teams up with UK property asset managers, offering investors a variety of opportunities (investment periods vary from one to five years).
It’s easy to register and invest, and exiting the deal isn’t problematic either. You simply need to wait until the end of your investment term – there are no exit fees or hidden charges waiting for you.
# 3 – Loanpad (Our Rating = 9.4)
Another recently launched property crowdfunding platform, Loanpad differs slightly from others. This peer-to-peer lending platform allows investors to pay into an online savings account, before transferring the money into attractive property deals.
Loanpad designed the platform to appeal to those seeking a flexible and simple investment option that’s easily accessible and relatively low-risk.
You pay into your cash account, and then your money is transferred and used to fund short-term property loans directly to borrowers.
This is an investment opportunity aimed at those looking to guard their hard-earned cash from inflation, providing you with returns in the form of daily interest paid into your account.
# 4 – CapitalRise (Our Rating = 9.2)
CapitalRise is another investment platform that gives you a choice of loans to invest in. Once a loan opportunity has been successfully funded, the money is lent to the property developer who required the investment.
The beauty of the platform is that you can expect returns of around 8-12% p.a. yet you won’t pay any fees if you see the investment through to completion.
That’s because it is the people borrowing the money who pay the fees instead.
The only significant downside is that there is a minimum investment of £1000 required which may put it out of contention for those looking for smaller investment opportunities.
Property Crowdfunding vs Buying & Selling Property
There are a few distinct advantages of opting for property crowdfunding over buying and selling a property.
- First off, you don’t need oodles of spare cash sitting around to get involved. In fact, you can invest on some platforms with as little as £10 (you won’t even get a window box and bunch of seeds to grow for that in today’s housing market)!
- Property crowdfunding is relatively easy to get into – registering is simple and you don’t have to meet a long list of complex criteria to get going.
- You don’t need any experience or knowledge relating to property investment. Instead, you can let the experts look after your investment for you.
- As a small investor it can be difficult to gain access to the big property deals, but with property crowdfunding you don’t have to go it alone, so there’s opportunity to think big and grab a share of a profitable project.
- You can spread even a modest investment over a number of properties and deals, rather than just focus on one property. That means if something were to go wrong you wouldn’t have to worry about having all of your eggs in one basket.
- Buying and selling properties can be a time-consuming business. You will need to put in a lot of effort (and we all know how much patience you need when looking for and purchasing the ideal place)!
You will then need to manage the purchase and sale, which will take up even more of your precious time.
Disadvantages of Property Crowdfunding
Property crowdfunding allows you to access investments that would ordinarily be out of your reach. However, as with any investments there’s an element of risk involved that you need to be aware of.
- The value of the investment can rise and fall, so you will need to keep an eye on your capital.
- There’s limited access to the property and limited input into the property deal – after all it’s owned by a whole group of investors, not just you!
- It can feel a little daunting handing your hard-earned cash over and effectively investing in a property with a bunch of complete strangers!
- Exiting a deal can, on occasion, prove tricky. If the investment has not performed as well as expected it could be hard to exit when you want, you also need to check if there are penalties for an early exit.
How Does Property Crowdfunding Compare to Other Investment Options?
Property crowdfunding is a very different kettle of fish than traditional property investment, but there are a whole host of advantages. The biggest draw appears to be the fact that you are not alone, so you do not have to shoulder the burden of investment yourself.
You form part of a consortium of investors, which means you can gain access to deals that would be too far big and pricy for you to consider if you were investing alone.
There’s also the opportunity to diversify – invest in a number of deals rather than just one (reducing the element of risk involved). Yes, investments values can, and do, rise and fall – but diversifying and spreading your outlay will limit your exposure to loss.
The beauty of property crowdfunding over other investment options also lies in the fact that you are not shouldering all of the burden. You don’t have to go and find the best opportunities, and it’s not your job to source sound deals and invest countless hours into researching the viability of a project.
In essence, you pay in and someone else does the legwork – finding and managing your investments for you. You can enjoy the returns, without the pressure and risk associated with overseeing individual investments.
How to Choose the Best Property Crowdfunding Platform
Well, we’ve provided you with three great options already – Brickowner, Property Partner and Loanpad. All three have their advantages and offer investment opportunities to those who are keen on putting their money into bricks and mortar, but are lacking in the funds to go it alone.
We can’t guarantee any of the three offer a completely risk-free investment option (is there anything in this life that’s completely risk-free?) However, by diversifying funds into a number of projects and joining with a larger group of investors the risk factor certainly comes down by several notches.
Add to this the fact that Loanpad, Property Partner and Brickowner are shored up by experienced and knowledgeable teams, and you start to understand why plenty of investors are turning their attention to platforms such as these.
We can’t categorically state the best property crowdfunding company for you. Go for the platform that meets your needs based upon your circumstances, and what you are looking for.
Make a sound choice by carefully reading our reviews and checking out the comparison table we have put together for you.
We wish you well in your search for the right property crowdfunding platform for you, here’s to investing wisely, and getting a great return.