Why our Property Bonds?

Exemplary experience

Successfully trading since 1995

Investments from £5,000

High, fixed, regular returns

Simple sign up process

No fees or middlemen

Strong security

Minimal involvement needed

Open 7 days until late

No experience required


Step 1 of 2

  • 1

    Complete the “Instant Quotation” form at the top of our website.

  • 2

    Confirm your acceptance electronically.

  • 3

    Provide scans of required documentation.

  • 4

    Make your investment.

  • 5

    You will receive a completed 'Loan Note' and you are now up and running!

Property Crowdfunding. Pros and Cons to Consider

Often confused with peer-to-peer lending, property crowdfunding is an entirely different approach to property investment. Crowdfunding investment occurs when a business uses a crowdfunding platform to raise money, by selling shares in the equity of property investments to a series of investors.

Property development investors interested in property crowdfunding can potentially spread their capital across a wide variety of investment opportunities, typically managed by the platform itself or a third-party intermediary. Investing in property by way of crowdfunding is the preferred option for many investors, as it negates the need to purchase a 100% stake in the property or development in question so reduces risk and the amount of capital required.

As with all investment opportunities, crowd property investments are not for everyone. Carefully considering the pros and cons of property crowdfunding in the UK is essential, before making any major investment decisions.

The Pros of Property Crowdfunding

While motivations for choosing crowdfunding opportunities vary from one investor to the next, the following are the biggest advantages of this investment pathway:

  • Crowdfunding is a comparatively affordable option, as you do not need to buy a major stake in the property to take part.
  • You do not need to be an expert to get into property crowdfunding, as many of the leading crowdfunding platforms are easy to use and simple to negotiate, however, knowledge and experience hold the key to successful financial decisions.
  • It is a quick and easy entry point to the UK real estate market, which can otherwise be difficult and costly to buy into. Leading crowdfunding platforms provide real-time listings of investment opportunities, often available for immediate investment.
  • The possibility of high returns is one of the primary points of appeal of property crowdfunding. Returns vary significantly, but it is not uncommon for a savvy investor to take home yields in the region of 5%+.
  • Most platforms charge competitive fees and rates of commission, which may be considerably lower than those of a conventional representative or intermediary. All of which can reduce costs and help increase profits. Some platforms are FOC.
  • The ability to control risk by spreading capital across a series of investments (and different crowdfunding platforms) is another advantage for investors.

The Cons of Property Crowdfunding

Most of the negatives associated with property crowdfunding relate to a lack of direct control and the potential for losses due to poor decision-making:

  • The value of your investment could fall at any time due to a variety of factors. Examples of which include unexpected repair and renovation requirements, properties remaining unsold for long periods & general market changes.
  • You relinquish full control of the property to a third parties. As you only own a share of the investment property, you have no direct influence over how it is managed or maintained after purchasing your share.
  • Property crowdfunding is largely uncharted territory, which has not been around for long enough for its true long-term value and risks to be fully assessed. This can be off-putting for investors seeking long-term assurances.
  • You are at the mercy of a third-party company from the moment you purchase equity in a property, which may or may not provide the skilled and hands-on management needed to ensure it is a successful and profitable venture. It is important to fully review any company where you intend to invest.
  • Fees and commissions vary from one platform and provider to the next, which may include things like transaction fees, account fees, asset management fees, arrangement fees, VAT fees and a contribution to stamp duty.
  • Early exits are not always an option when things go wrong, with heavy penalties payable for those who choose to exit their investment early. This is something to check carefully before entering into any property crowdfunding agreement.

Independent Advice You Can Trust

If considering the prospect of property crowdfunding but unsure whether it is suitable for you, the input of an experienced broker could prove invaluable. Along with helping you determine your suitability for property crowdfunding, an established broker can also help you find the most attractive investment opportunities via competitive platforms with the lowest possible fees.

For more information on any of the above or to discuss the potential benefits of property crowdfunding in more detail, contact a member of the team today.