You might want to consider these following factors when choosing the right crowdfunded property investment for you. However, please bear in mind that Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Property prices can go up as well as down.
Choosing the right platform
Choosing the right platform can be a vital part of your investment journey.
Customer service
Great customer service can make all the difference. Having a chat window option or reliable email communication can make your investment experience much easier. At Property Moose, we welcome all queries and have a chat window option on every page of the website. This is to help ensure that our customers can learn and stay informed through every stage of their journey with us. We’re also just a phone call away.
Past success
When deciding on a platform, don’t be afraid to do some digging. Check out if their previous statistics weigh up. Ask yourself, has this platform been consistent and accurate with their listed opportunities? How many members do they have? How much money have they raised?
Transparency
Honest communication about fees, a property’s potential and the risks involved are crucial to establishing trust. No platform should openly declare a guaranteed return on investment. For example, being reminded of your capital’s risk whilst visiting a potential platform’s webpage shows a level of integrity, transparency and honesty.
Cash Flow or Future Gain?
It’s important to clarify your own investment goals. Decide if you’re more interested in cash flow or capital growth. If your risk tolerance is low, then you might find yourself more suited to an opportunity that provides you with cash flow, i.e. high rental income. Some investors on the other hand are happy to achieve a lower yield at the prospect of capital appreciation. Property that provides you with a higher rental income involves risks that rent won’t be paid on time, or that the property may be untenanted for a while. Ensure that the property crowdfunding platform has an effective way of dealing with such hassles. When deciding which property crowdfunding investments to choose from, why not spread your capital across many? That way, a single unreliable tenant might have less of an effect on your capital.
Returns
And of course, think about the potential returns. Does this opportunity stack up?
It might also be worth comparing the returns on offer to the returns of the local area. With every investment opportunity, Property Moose provides details of the surrounding area to help our members make a more informed decision.
Projected Figures Provided
Property investment opportunities on crowdfunding platforms should give you digestible, easy to understand predictions of how the investment will hopefully weigh up. At Property Moose, we aim to make it as simple as we can with our returns calculator. This allows you to see what you could potentially expect to receive in return for your money, and how this will be returned to you – i.e. monthly rental income and annual return. In addition, data regarding the Below Market Value rate can be found, the length of the term and the projected growth.
It’s important to know, however, while these projected returns are thought out and well researched, property prices may go up as well as down, so conducting your own due diligence is key. Forecasts are not a reliable indicator of future results.
How were the Projected Figures Calculated?
This is important to bear in mind. Try to understand where these projections have come from and how these conclusions have been reached. Often, a platform’s profits are tied to yours, so it’s in the company’s best interest to ensure projected figures are realistic and feasible. But for your own knowledge, it might be worth finding out where these figures have come from. At Property Moose, for example, we’re constantly trying to improve every aspect of our product, which is why we’ve recently updated the way we project property values. We now offer more localized, frequent and what are intended to be more accurate valuations, which you can find out more about here.
Security and Risk
What type of property investment is it? Before investing, you should understand how secure the investment might be. Is the investment ring-fenced? What happens if the platform goes bust? This shouldn’t be a concern for Property Moose members, because of our Nominee Structure. Under this structure, properties are purchased through an individual Special Purpose Vehicle in the form of a limited company (the SPV). Read more here.
Conduct your own Due Diligence
At Property Moose, and many other crowdfunding platforms, our fee structure is directly tied to our member’s investments. We make money when you do. It’s therefore in our best interest to secure what we deem to be the best investment opportunities – if a property doesn’t fit our requirements it won’t be listed on the website. However, conducting your own due diligence is key to any investment. It’s important to know the risks, feasibility and potential of any opportunity. Visit our website to find out more: https://propertymoose.co.uk/
Property Moose does not provide any advice in relation to investments and you must rely on your own due diligence before investing. Please remember that property prices can go down as well as up and that all figures, rates and yields are projections only and should not be relied on. If in doubt, please seek the advice of a financial adviser. Your capital is at risk if you invest. This post has been approved as a financial promotion by Resolution Compliance Limited.
Property Moose is a trading name of Crowd Fin Limited which is an Appointed Representative of Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (no. 574048).