Revilo Explains has created the first explainer video about Proptee. You can check it out here, we really like it.
Our answers to his extra questions:
When we sell a property, will you get back your share from the “Energy fund” of the property?
No, these funds won’t be paid back. The same way as you don’t get back the leftover maintenance costs from the REITs. Proptee is an exchange, we cannot encourage people to participate in a market where holding makes a lot more sense than selling. We believe paying back the small money remaining in the energy funds would encourage people to just hold the shares until the property is sold drastically reducing liquidity. The size of the Energy fund should be equal to the maintenance costs of a property, we won’t earn any money on it.
How will we make money?
Revilo is perfectly on point here. We will have a Proptee Premium account later for features mentioned by him at 6.41.
Also, as we said in the FAQs fees section, Proptee will have a B2B business too by allowing other companies to connect to our exchange via an API and build apps on top of our platform.
What’s the minimum percentage of people that can vote to sell a property?
This is a hard one. Honestly, we don’t know the FCA’s stand on this yet. What are your suggestions here? What would be the best for you guys?
Does this income count as property income or dividend income?
When you buy and sell shares, the difference in price (how much you gain or lose) will be subject to Capital Gains Tax. The monthly income that comes from rent will be distributed as dividends, therefore you’ll pay dividend tax.
PS. Subscribe to his YT channel – Revilo Explains, his videos are super informative