Simple Questions Thread 🙂

What’s the one thing you’ve always wanted to know about Proptee, but been too afraid to ask? Or is there something you just don’t get?

In this thread, feel free to ask anything you’d like. And remember: there’s no such thing as a stupid question.

@BenToth what do you think the liquidity for the shares will be like?

@SteveM24 It’s quite hard to predict at this stage. Every exchange has a liquidity problem at the beginning and for us, it’s even a bit harder as we are listing properties. Fundamentally, the main concept of an exchange is that you can pay more to buy sooner or ask for less to sell sooner. So in our case, being an exchange is beneficial.

We have some plans to make the market more liquid, e.g. using market makers or not releasing all the shares at the same time upon a new IPO.

We’re going to release our APIs too, where other companies can connect to our exchange and do trading themselves.

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This may be a stupid question/thought but I’m gonna ask anyway :joy:

Imagine you held a certain amount of shares of a given property, would you be able to visit it as technically you own that % of that property?

Just a thought :man_shrugging:

Technically, you can visit any property in any country in the world. :joy:
Being an investor on Proptee doesn’t grant any right for you to go into the property.

@BenToth will you providing and ISA options for the investment accounts? Something like the IFISA (Innovative Finance ISA)?

@SteveM24, Yes, our IFISA will be part of our premium offering, which is planned to launch after our free general investment account.

That’s great, thank you.

It’s excellent to see this project gaining momentum, it must be really exciting for you guys. How long have you been working on the project?

@BenToth Will there be a way of finding out the rent we will get based on our investment for each property?

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Guys, can you help me understand why you would invest in part of a singular property via Proptee over a property fund that’s more diversified and will grant you higher returns (at least in the short run, probably in the long run too)?

Also, to piggyback off a hypothetical scenario laid out by a poster in another thread, if a £5k investment in a property in central London will pay £10 in dividends each month (120 p/y), and we assume a very generous property value increase of 3%, you’re still underperforming the S&P500 by almost half.

I’m by no means an expert so if you think I’ve missed something, I probably have. Feel free to correct me if I’ve made any mistakes but it would be good to hear an answer. Thanks!

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Yes, it very motivating. The idea was born last year December. After our market research, we started to work on Proptee full time in June/July.

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@Connor82, sure! This information will be shown in the app. :iphone:

Thanks for the question @zyzzbrah!

why you would invest in part of a singular property via Proptee over a property fund

Short answer: control, liquidity, fees, and yield.

We give investors the ability to pick the individual properties in their portfolio, to get their money out any time without being “punished” with high fees. Also, if you pick your investments correctly, you can achieve higher yields than a property fund. The same way as you invest in individual stocks compared to indexes, like the S&P500.

The numbers in the other question were just hypothetical, we aim for higher-yielding properties than that. :chart:

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@BenToth What will all the fees be and the price or %?

@Connor82 We only charge a 0.85% management fee every year. No commission on trades.

However, we are thinking of changing the structure of the management fee, and rather than charging a fixed percentage upon buying the shares, we might deduct it from the rent every month instead. We think it would be a lot easier for us and for you too.

What do you think guys? Which way should we do it?

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@BenToth Thanks for the reply! Regarding the other way, how would we know how much would be deducted from the rent each month? How much would be deducted?

A small fee to cover the costs of management + maintenance. It would be a fixed percentage deducted from the rent. Every property will have a different % depending on location and type. We hope to get the number down to 10% which is cheaper than the 12-20% agencies normally charge. This is not finalised yet and we will keep you updated.


Would investing in Proptee make one lose the status of first-time buyer (and therefore the benefits of a LISA)?

@Alan no, you won’t lose the status of first-time buyer. On Proptee, you invest in a company directly that owns the property.

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Will there be an auto-invest feature?

It would help to make investing in property so much easier :smiley:

@Kasper, we’ll look into that after we have our core product launched. I added it to our feature requests! :wink:

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