Another property crowdfunding platform is launching in a bid to attract would-be investors who cannot afford or choose not to enter the traditional buy to let market.
Propnology, which has been authorised by the Financial Conduct Authority, is not emulating some existing property crowdfunding platforms which buy, renovate and then let (or sometimes sell) the modernised property.
Instead Propnology says it will buy traditional buy to let-style investments and keep them for between three and 10 years. It says it will target purchases on sale at under market value and with good yield potential.
Investors can choose the amount they wish to invest, starting from £500. They will receive 100 per cent of the net rental income during the time the property is let; profits, if any, will be distributed on a quarterly basis as a dividend.
Propnology's fees are two-phased: there is a one-off 5.0 per cent funding fee on the purchase of the investment, plus an administration fee equivalent to 10 per cent of the net profit upon disposal of the investment.
The launch announcement makes no reference to what happens if the investment does not generate a profit.