A £212,900 property in Surrey which was advertising on a crowdfunding platform at 3pm was fully funded by 3.35pm, it is claimed.
Investments came in at a rate of £6,000 a minute for the two-bed flat, with £1,700, the average individual investment. A total of 126 investors had bought all the shares in the flat.
The platform was Property Partner, which allows individuals to invest in property without requiring the funds or expertise required for a direct buy to let investment.
The platform says individual investors receive a monthly rental income and benefit from any capital growth in direct proportion to their ownership, once platform fees have been paid. The platform also allows investors to offer their property holdings for sale via a designated secondary market.
So far, 12 properties with a total value of £3.5 million have listed, ranging from a £165,000 flat in Ilford to a £435,000 flat in Whitechapel.
Property Partner claims over 25,000 people have signed up to it since its launch in January, and nearly 2,000 have made investments ranging from £50 to over £70,000.
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Ridiculous! You can't argue with that, fully funded in under an hour. I have my reservations about crowdfunding, but it's definitely an innovative way of getting investors involved in a wide range of projects.
Agreed, this is quite astonishing. I too have reservations about crowdfunding, but it does appear to have a purpose - it's like the online version of an auction and seemingly much better at generating interest.
Ok so let's assume that the tent is £1200 each investor would get roughly £9.50 per month and the average investment per person is £1682. Let's just say hypothetically that the property is worth £350k within 4 years which I highly doubt this means split 126 ways their return is £1095. I think that these people haven't done their sums and in for a surprise. Rule number 1 when investing know your numbers.
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