Property
Buy-to-let is the traditional way to make money from property and to provide an ongoing steady passive income stream. Many people, however, will have looked at the opportunity and maybe discounted it as having too many risks and too much work. Recently, some of the tax breaks around buy-to-let have disappeared and many landlords with small numbers of properties have decided it is no longer worth the effort.
Clearly for some people, buying a property, doing it up and renting it out can be a great way to earn a good level of passive income. However, for others, who don't feel that they can commit to the amount of time and risk needed to purchase a complete property, there is another option. The alternative is to buy property through crowdfunding. There are a number of companies that offer this type of property crowdfunding and in essence it is a very simple concept. Rather than buy a property outright yourself, you buy a property with 100s if not 1000s of other people and then own a 'share' of that property related to the amount you contributed. Property crowdfunding companies do all the legwork, and this along with the technology used makes the whole process quite straightforward. Click on the referral link below to take you to Property Partner which was one of the first property crowdfunding companies in the UK.*
Clearly for some people, buying a property, doing it up and renting it out can be a great way to earn a good level of passive income. However, for others, who don't feel that they can commit to the amount of time and risk needed to purchase a complete property, there is another option. The alternative is to buy property through crowdfunding. There are a number of companies that offer this type of property crowdfunding and in essence it is a very simple concept. Rather than buy a property outright yourself, you buy a property with 100s if not 1000s of other people and then own a 'share' of that property related to the amount you contributed. Property crowdfunding companies do all the legwork, and this along with the technology used makes the whole process quite straightforward. Click on the referral link below to take you to Property Partner which was one of the first property crowdfunding companies in the UK.*
Property Partner is the UK's leading property crowdfunding platform with around 10,000 investors. They currently hold assets of over £140 million; selected, purchased and managed by a group of property experts, with each individual property broken down into shares that can be purchased through the Property Partner website or app. You can either bid for new properties when they come up on to the market or buy shares in properties on their extensive secondary market. Through Property Partner you can easily diversify your investment by investing small amounts in multiple properties. Passive income is earned through rental yields which can vary from around 1% to 7%, depending on the property, and through growth in value of the property once you sell your shares. Property Partner charge a number of fees to cover their costs, grow the business and make profit. Currently these are a small monthly platform fee, a small percentage of each investment, and an Assets Under Management (AUM) fee. Most of the properties are currently flats and houses rented out to long term tenants. However, they have recently diversified into student accommodation, commercial accommodation and development loans. Their business model is scaleable and in the future it is likely that overseas property may be available.
* On this website there are a number of referral links which will pay out a bonus to both you and Finance55 should you click on the link and subsequently sign up for the service. This is a normal marketing strategy for many companies as it gains them new customers with minimal advertising. The amounts are not that significant, but if it's available you might as well have it and any money earned by Finance55 will help go towards paying for and developing this website.