Providing a viable, non-banking alternative for property investment has been a personal goal of mine for several years now. The Crowdahouse Pioneer Fund is the first step to achieving this. - Gary Corben, CEO
(PRWEB UK) 10 October 2012
On October 11th 2012, Crowdahouse.com a new online property investment club founded by Gary Corben and Peter Lane, will launch the WORLD’S FIRST crowdfunded property portfolio fund. The Crowdahouse Pioneer Fund™ will be a significantly different investment opportunity, open to any member with a minimum of £5,000 to invest, enabling consumers to own a share of a £1,000,000 RICS evaluated property portfolio, designed to deliver rental returns of minimum 6% pa over a fixed 6 year term.
“I firmly believe that this concept has the power to change the way we invest, forever” Gary Corben, Founder and CEO of Crowdahouse.com. “Providing a viable, non-banking alternative for property investment has been a personal goal of mine for several years now. The Crowdahouse Pioneer Fund™ is the first step to achieving this.”
Despite the recent increase in buy to let mortgages, for the majority of ordinary people getting into property investment still remains difficult - high LTV requirement and onerous credit checks being just two of the many hurdles. But a pioneering new way of investing means that with only £5,000 members of a new property club can reap the rewards of the buoyant rental market.
The Crowdahouse Pioneer Fund™ works by leveraging fellow like-minded investor’s monies (instead of bank finance) to create a SPV, owned 100% by the investors, that will purchase 5-10 existing (not new build) RICS evaluated, 2-3 bed properties within urban/suburban areas of England that show strong rental demand. Rental income over the 6 year period, plus any gains in property value, will be returned to the investors. With no bank involvement, there’s no interest rates, no exorbitant annual management fees nor hidden charges and no complicated investment strategies to decipher.
By removing banks from the equation, and leveraging fellow like-minded investors, Crowdahouse.com makes property investment - easier (minimum £5k investment), cheaper (no mortgage interest rates or AMVs) and safer (portfolio of existing properties bought specifically for RICS evaluated rental returns spreads risk) than solus investing or ‘traditional’ property funds.
Crowd funding arose, initially in the US via the JOBS act and now here in the UK with companies such as Crowd Cube, as a method for businesses to by-pass banks’ reticence to loan and mobilise investment without the need for banks. Crowdahouse.com aims to do a similar job, but rather than focus on business (and often risky start-ups), will create opportunities for investors to club together to invest in tangible, understood, property assets, without the need for banks. Looking for established returns via rental income, not gambles on increases in property values.
The Crowdahouse Pioneer Fund™ aims to raise a modest £1,000,000. Modest in comparison to the size of the property investment market, yet pioneering in the world of crowd funding. Crowdahouse.com will position itself as the first mover, market leader, releasing further game-changing funds in the next few months, in what is sure to become a highly competitive new market.