The earlier you start thinking about retirement the better. In fact, “The difference between starting a pension at 25 and 40 could be more than £600,000.” (1)
Property might be popular amongst retirement planners. The Bank of England’s chief economist, Andy Haldane even argues “Property is a better investment for retirement than a pension.” (2)
However, with traditional property investment, you may find yourself worrying about the following:
- Expensive housing market
- Mortgage rates
- The possibility of foreclosure
- The increase of stamp duty
- Knowledge and expertise of the market
- Managing tenants
- Illiquidity
But it might not have to be so complicated.
Thanks to financial-tech startups, there are new ways to invest in property. Indeed, “Fintech has become synonymous with a movement for change, a mindset geared towards disruption.” (3) That’s especially true for property crowdfunding. At Property Moose, for example, property investment isn’t exclusively for those who have the money to get started.
Under the premise of crowdfunding, Property Moose gives you the possibility to start investing from just £10, receive any monthly rental income and potentially benefit from capital growth.
Many of our members treat our investment opportunities like a regular savings account, because by investing small amounts regularly, they are able to spread their risk and diversify their investment portfolios.
Some potential benefits of property investment through Property Moose include:
Affordable entry point
We are committed to lowering the barriers to home ownership. That’s why our minimum investment amount is just £10. We also source our investment opportunities at discounted rates. As a result, many of them are below market value, providing you a with a greater chance of capital growth.
Hassle Free
We hire local expert agents who manage the properties, so that you don’t have to worry about the chore of being a landlord. Simply invest, and start watching your money work for you. You won’t have to fix any repairs or deal with unreliable tenants.
Expert Finance, Legal and Insurance Knowledge
Our team of property managers have a wealth of experience and many have been with us since we opened our doors. This is routine for us, and we believe we have mastered how to do it.
Market Knowledge
Our profits are tied to yours. Before we decide to source a property, we make sure the opportunity stacks up. It’s in our best interest and yours to provide opportunities that we believe will work. We conduct extensive market evaluations, as well as market growth projections.
Potential liquidity
To combat the lack of liquidity within property investment, we’ve created a secondary market where you can buy or sell shares at any point during the investment term so long as you find a willing buyer. You can read more about our secondary market here.
By reimagining homeownership, we are aiming to create a social change where inclusivity and opportunity are fundamental drivers.
Of course, there are risks involved with property investment such as the loss of your capital and lack of any rental income due to void periods. However, you may potentially find that with the help of our experts, your property investment experience is more affordable and hassle-free.
Written by Jenna Kamal
Sources
- http://www.thisismoney.co.uk/money/pensions/article-2387716/Start-pension-saving-early-600-000-better-off.html
- https://www.theguardian.com/money/2016/aug/28/property-is-better-bet-than-a-pension-says-bank-of-england-economist
- https://www.starlingbank.com/wp-content/uploads/2016/09/starling_fin_tech_report_final.pdf
Disclaimer and Legal
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no: 574048).
