As new technologies such as fintech and proptech continue to evolve at faster and faster paces, the future of property crowdfunding is uncertain in its detail but guaranteed to survive. Today, Amy and Ben look into the future and specifically at the role that property crowdfunding can play in affordable housing and the social property marketplace.
Property Expert Series: Ben Grove from Property Moose
- Part 1: What is Property Crowdfunding and is it a Good Way to Invest?
- Part 2: How Does Property Crowdfunding Work?
- Part 3: Secured Loans and Property Crowdfunding with Property Moose
- Part 4: How to Choose the Right Property Crowdfunding Platform for You
- Part 5: How are Investors Protected with Property Crowdfunding?
- Part 6: What is the Future of Property Crowdfunding
- Part 7: What are the Returns Like with Property Crowdfunding
- Part 8: Should I Invest in Property, Stocks or Shares?
- Part 9: What Problems could Crowdfunding Investors Face in the Future
- Part 10: What Due Diligence is Needed Before Investing in Property Crowdfunding
- Part 11: What Property Deals Work Best with Crowdfunding
Ready to Take the Next Step?
The Future of Property Crowdfunding
Amy: What is the future of property crowdfunding?
Ben: What a good question.
Amy: You are certainly at the forefront of it so...
Ben: I'd like to think so. We have actually just had an internal success with a collaborative e-book that we have put together.
So, there are lots of buzzwords in this industry. You get 'prop-tech', 'fin-tech', all that kind of stuff. We've got this amazing content department where they really are very passionate about what we do and we all work together to build what we'd like to think is almost trying to bring the industry together.
Because there are so many people out there that have so much input and there is just so much information out there that I don't think speaking to one person is good enough.
So, this e-book, you can download it for free from the site. It's 17 industry heads so you have got Andrew Gardner, who is the CEO of the company. You've got me and then a whole host of other people.
And we talk about the rise of property technology, asset classes, property, itself, investment, and how things are going to change.
I think it's the same as with anything. As technology becomes more accessible, as the Internet gives us more access to more information, it is just going to be that the marketplace becomes more educated, which brings more people up to a level of confidence to actually invest in sites such as Property Moose and crowdfunding as a discipline.
Because if you would have said to me, five years ago, that you can invest in a property for as little as £10, it would have been a 'That's too good to be true, that can't be right, that doesn't work, how does that happen?' Because I've been so used to investing in a particular way.
Whereas now, five years on from where we started, the marketplace is becoming more educated.
So, I think that... Is that a good enough answer?
Amy: Yes, I think that's fantastic. It's quite disruptive, isn't it?
Ben: Yeah, I like that. I like the word, 'Disruptive'. It keeps you on your toes.
I would like to think that it's here to stay. I think it might evolve. I think that more styles of investment will become available.
Amy: I think so too and I know we discussed, off-camera, the work that I do in the social marketplace with the homeless and looking at affordable housing. And for me this is a really exciting avenue for me to go down next, in terms of that marketplace because, as we know, it's been getting more and more difficult to finance any type of property project, particularly if you're trying to finance multi-let projects that contain people who perhaps have social issues and are vulnerable and on benefits.
So, for the type of investors and clients that I work with, this is a very exciting new avenue that can enable them, not just to secure the funding that they need to invest in these projects but also to align with the right kind of partners as well, and the right kind of... The same kind of investor, who have the same kind of ethos, which, in social property investment, is very important.
So, I'm definitely going to talk to you, off-camera, with what we can do with that, moving forward.
Ben: I agree with you. A lot of the properties that we probably began with were in distressed areas. Because you can buy a property for a relatively small amount of money. I'm not dismissing that it's a large amount of money, as a single investment, but when you consider that you can't buy anything in prime-London for probably less than £250k and yet you can buy a 3-bed semi-detached in Durham for £30k.
I really wanted us to work closely with the councils because my theory was - and we've put it into practice now - that if you can speak to the council and say, 'Look, we are a responsible landlord and we have these properties and we have refurbished them, they're in a good condition. We want to help your distressed tenants. Because just because they are in bad situations doesn't mean they're bad people and as long as you can guarantee us that they will pay their rent and they will guarantee a deposit and they will make sure it's clean and tidy and everything else...'
So, we've been very fortunate. Durham Council, in particular, we're working with them, we're on their preferred landlord list, and we've got a really good situation with them, where we know that the rent to us directly.
We know that there's a professional clean that's carried out before they move in and we know there one when they move out. The deposit is paid. And, to be honest, because the properties are mostly refurbished, it's a home for them. It's not just a rundown, private landlord - I'm not saying everyone is bad. I'm just saying that there are worse properties out there.
And if you give someone a home they will treat it as a home. And we're very fortunate with that. But I agree with you. I think social housing and certainly distressed tenants and distressed areas or regeneration zones, these are areas that can be considered to be great investments, as long as you've got a certain level of assistance and a guarantee, from the local councils, that they want to work with you.
Crowdfunding is the simplest and quickest way to invest in property. In just a few minutes you can be well on your way to building a diversified and balanced, property portfolio.
Unlike traditional forms of property investment, crowdfunding does not require huge sums of money to get involved and opens up the property market to everyone.
If you want to find out more then click the link below where you will find all the information you need to get started including the details of our favourite property crowdfunding platform.
It’s simple, it’s secure and you can invest your money in minutes.