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'Ethical crowdfunding' site to invest only in debt-free buy to lets

A crowdfunding site describing itself as an ‘ethical investment platform’ is the first international crowdfunder to enable investment in debt-free buy to let properties.

Unlike other property crowdfunding platforms, MercyCrowd says every deal is 100 per cent debt free. 

It allows investors to buy equity in properties across Britain, France and Dubai and realise typical rental returns of between 3.2 per cent and 7.2 per cent.

MercyCrowd handles property management issues including finding tenants, collecting rent, maintenance, and charges. 

It says it sources each buy to let property and negotiates a price before listing it on the platform for investment. Once the investment target is reached in full, the property is purchased and the process of letting it out begins.

Rental returns are paid proportional to an investor’s equity holding, on a quarterly basis. The investment will typically be sold between three and five years after purchase.

It says one property, a £176,750 apartment in Manchester, has already been fully funded, purchased and let.

“The economy’s continual reliance on debt is concerning, which is why MercyCrowd is an equity-only platform. Debt-free property ownership is the next big thing and we want to be at the forefront of the trend” says a spokesman.

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