A firm with key staff recruited from Google and RBS and financial support from one of Zoopla's key backers has launched a platform allowing individuals to invest in property using similar methods to those used by stock market investors.
Property Partner enables people to invest in individual residential properties and receive a monthly rental income, plus capital growth if it exists, in direct proportion to their ownership.
Property Partner identifies locations and individual properties that are likely to be attractive to investors. It then lists each property on its platform with photos, floor plans, a report and valuation from the chartered surveyors, title report from the lawyers and financial information, such as predicted income.
Investors can choose the sum and proportion they wish to invest. When the transaction closes, they jointly own the property with any other investors in the same property and receive their share of rental income each month.
There is a one-off transaction fee of two per cent charged on the purchase of the investment and the firm emphasises this is not annually recurring and that there is no charge on disposal. There is also a fee of 12.5 per cent plus VAT on rental income to cover, the firm says, advertising, letting and managing the property.
Property Partner investors can realise any capital gains by offering their investment for sale to others on the platform at any time. After five years, the platform also gives everyone the option to exit at market value.
The firm has already funded one property, a three-bed Victorian house in Croydon, south London, tested on a closed group of investors. The funds to purchase the property were raised in 21 days from 148 investors.
Other properties currently available to investors are a two-bed house in Hounslow, West London, and a two-bed flat within a warehouse conversion in Whitechapel.
The firm has secured £1.25m seed funding from Octopus Investments (a backer of Zoopla), the Seedcamp fund, Jon Moulton the founder of Alchemy Partners, and Ed Wray, the co-founder of Betfair.
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