Do you have a tip for us about where to invest? Don’t hesitate to tell us more.
London area would be cool, how does it work. Do you guys have to purchase the property to then list it on the app?
Great, @Kasper noted.
It really depends on the situation, but ideally no, we don’t have to buy the property before it’s listed on Proptee. The seller comes to us and we list the shares on his/her behalf. During IPO, investors buy the shares from the seller. This way sellers don’t have to sell the entire property, so they can release less than full equity.
Have you got any properties lined up for the January launch?
Yes @jackbailley, we have a couple of landlord in London who will list on Proptee.
Hey Ben, love your idea, been in property investment myself for the past 5 or so years.
I still don’t get the concept, or the numbers involved.
Could you provide an average london example for a property priced at 500k, and average monthly rent of 1000, just to keep numbers super simple.
Let’s say the shares are £1 each. Would i just buy 5k shares and get the right to something like 5% of the rent, making it about 50 quid every month?
Is that the main concept here?
Could you provide an average london example for a property priced at 500k, and average monthly rent of 1000, just to keep numbers super simple. Let’s say the shares are £1 each. Would i just buy 5k shares and get the right to something like 5% of the rent, making it about 50 quid every month?
Following your example, if you put 5K in this property, you would only own 1% as the value is 500K. Therefore, you get back 1% of the rent every month, which equals to £10.
There can be other factors that affect the income, for example, leverage on the property.
I hope this answers your question.
The last place to look for high yields is London or the South-East.
There are various websites that show the highest yielding areas but you also need a degree of economic certainty.
North-East is probably the highest yielding but sluggish growth limits capital growth; it’s not all about yields
North-West, particularly Manchester is good yield & growth area
but even better is
Glasgow and the surrounding areas offer very good yields and is an area of growth.
In general, look at the student towns but not student accommodation. Students traditionally absorb the less desirable properties which moves everyone one else up the chain.
So, unless we’re talking really high yield property, which I don’t think there is much in UK, this is just unprofitable… and i know there’s going to be fees on every side as well…
Anyway, as it’s a marketplace, maybe there can be some non UK property? Or does that not fall in your current plans?
i know there’s going to be fees on every side as well
We don’t charge commissions on any trades, we only charge a small management fee for the properties–which will be cheaper than doing it on your own.
maybe there can be some non UK property
We plan to expand in the EU bringing investors foreign investment properties. Right now, we’re working on a partnership with a Spanish company (will be named later).
That’s better. sign me up for that spanish yielding stuff then