Will crowdfunding overheat the property market? | The Memo

This group offer ordinary investors, in the UK and from around the world, the ability to invest in buy-to-let properties from as little as £50 (on Property Partner).

Investors own a stake in the property, take a share of the monthly rent and at the end of a minimum term (usually 5 years) are given the opportunity to cash out if they wish (hopefully reaping profits as the value of the property rises).

It’s an enticing idea and one that’s attracting huge amounts of interest (and cash) from ordinary people around the world who, for the first time, can now easily invest in London’s coveted housing market.

Hot property

As we reported on Monday, Property Partner recently funded one of its properties in just 35 minutes, raising over £500,000 to buy a two-bed flat in Tower Bridge.

The crowdfunding site has new investors pouring onto the platform, causing the time it takes to fund a property to plummet from 14 days in January to mere minutes today.

Similarly Property Moose recently funded a property in just 12 hours (its fastest yet, albeit in County Durham) and The House Crowd at the end of 2014 had invested £5m across 78 properties in Manchester.

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