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The Property Crowdfunding Space is Still Far From Being Overcrowded

Peter Hemple looks at different ways of buying a tiny slice of a property

Crowdfunding has now been around for several years now but is still experiencing very rapid growth. Property crowdfunding is a newer phenomenon with many companies only starting up in the last 6-12 months, but all seem to be overwhelmed with how fast they are growing, such is the demand from smaller property investors to 'scatter' their investments or for investors in general to benefit from the property market without getting their hands dirty.

In this article we will look at some of the UK property crowdfunding companies in more detail.

Property Partners
This residential crowdfunding platform was in the news recently after it hit its funding target for a two-bed flat in Tower Bridge, costing more than half a million pounds (£509,600) in just 35 minutes. Investments came in at a rate of £242 a second. The deal was the most expensive property sold so far on the website and attracted investors from all over the UK, each investing an average
of £1,582 each.

Since launching in January this year, £6m has been invested with Property Partner, spread across 18 different properties, and over 40,000 people have registered on the site within six months.

Property Partner, like many other property crowdfunding sites, enables people to invest in individual residential properties, just as they can in company stocks. They then receive a monthly rental income - and benefit from any capital growth - in direct proportion to their ownership. However, unlike other platforms, it also allows investors to offer their property holdings for sale via a designated secondary market, something it claims no other sites are doing in the UK.

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