Summary
- Property Partner is a Real estate crowdfunding provider
- Allows users to invest small amounts in properties
- Low risk - high single digit returns
- Rental income (dividends) received monthly
- Low fees. Only a 2% fee on the amount initially invested. No fees on rent income or disposals!
- FCA Regulated
- Click here to register and start investing
Get started - How to set up your account
2. Make a bank transfer to top-up your account. You can use Transferwise, Revolut or other online banks to minimise the bank transfer fees.
3. After receiving the funds, you can start investing.
How does Property Partner work?
How does Property Partner work?
1. Properties that appear on Property Partner are selected by experts, thus are usually above average investments.
2. Each property is owned by a separate company, known as a SPV (Special Purpose Vehicle). When you invest in a property, you essentially buy a piece of that company (known as shares), which has the sole purpose of owning the property and collecting rental income, making you rich! The SPV structure also ensures that your investment in one property will not be affected by other investments or by Property Partner in case it were to fall in financial distress.
3. You can invest in properties by purchasing shares other investors are willing to sell on the Property Partner platform or by committing funds to new purchases. Both can lead to high returns!
4. Your return is made of rental income, which is received monthly and capital appreciation of properties.
5. You can sell your shares at any time if you list them at a reasonable price!
2. Each property is owned by a separate company, known as a SPV (Special Purpose Vehicle). When you invest in a property, you essentially buy a piece of that company (known as shares), which has the sole purpose of owning the property and collecting rental income, making you rich! The SPV structure also ensures that your investment in one property will not be affected by other investments or by Property Partner in case it were to fall in financial distress.
3. You can invest in properties by purchasing shares other investors are willing to sell on the Property Partner platform or by committing funds to new purchases. Both can lead to high returns!
4. Your return is made of rental income, which is received monthly and capital appreciation of properties.
5. You can sell your shares at any time if you list them at a reasonable price!
Tips
- Invest in high dividend yield properties, listed on a low premium. For example, one of the properties I am invested in is a property in Cubbington shown below. It offers a healthy dividend yield of 4.66% and was listed at a premium of 0.35%.
- This means, that I will receive about 4.66% on my investment in this property annually. The dividend yield listed is the net rental income you will receive, as it is stated after the related costs are deducted.
- To purchase the shares in the SPV, I paid 0.35% over its current market value. This means, that I have paid 0.35% more to purchase a piece of the property than it actually worths.
- Invest in properties that have long term leases. For example, the property above has a 17.5 year lease, starting from 2017, meaning guaranteed income for investors. The lease is also inflation linked, thus it increases with inflation. Finally, as you already noticed, the property is leased by Sainsbury's, the second largest chain of supermarkets in the United Kingdom, further reducing risk.
- Use the bid system to invest in properties. For example, as shown below, the lowest offer price is 278p per share, while the highest bid price is 274p per share.
- This means, that if you were to invest straight away, you would have to pay 278p per share, as that is the lowest price one of the current owners is willing to sell.
- A better option is to bid for properties, just like eBay! For example, the highest current bid is 274p, meaning that there is a potential investor that committed to buy shares in the property at 274p per share. What I do when I really want a property, is to bid at 1p higher than the highest bid. Thus, if I wanted to invest at the property below, I would have bidded 275p. The end result? Paying 275p per share for the property if a seller is found (usually found within 1-2 days) instead of 278p!
- Similarly as above, use the Offer system to sell your investments in case you need the funds to invest in other properties!
Review
1. Reward ★★★☆☆
Returns exceed 7%, which is reasonable when compared to actual real estate investing!
2. Risk ★★★★☆
Real estate investing is considered to be lower risk as it is not volatile. Additionally, as explained above, each property is owner by a separate SPV entity, which eliminates platform risk. Finally, you can invest in various types of properties such as commercial, student accommodation and residential on various UK locations thus diversify hence further reduce risk.
3. Availability ★★★★★
Property Partner is available worldwide, but only in GBP. Nevertheless, all properties are located in the UK.
4. Minimum investment ★★★★★
The minimum deposit is £50. Nevertheless, the minimum investment is 1 share which can even be below £1, hence anyone can invest!
5. Functionality ★★★★☆
Property Partner is designed really well and is easy to use. Information regarding dividends, properties and fees are presented clearly.
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