Is this the future of buy-to-let? 126 investors purchase £212,000 Surrey home in just 35 minutes on crowdfunding site
A two-bedroom flat in Byfleet, Surrey, has been snapped up in just 35 minutes on a crowdfunding platform, at a ratio of £6,000 per minute.
A total of 126 investors clubbed together to purchase the home on the Property Partner platform when it was listed at 3pm last Friday, with each putting an average of £1,700 towards the £212,900 property.
To date, 12 properties with a total value of £3.5m have been listed on the platform, ranging from a £165,000 flat in Ilford to a £435,000 home in Whitechapel. The Byfleet propertywas particularly attractive to investors as Property Partner managed to obtain it at a 20% discount due to a freehold dispute
25,000 people have signed up to Property Partner since it launched in January, with over 2,000 making investments from £50 to £70,000 through the website. The company charges investors a 2% fee and 12.5% annual management property management fee.
Property Partner founder Dan Gandesha told This is Money: "To fully fund in just over half an hour beat all our expectations. On average, our properties are reaching their funding targets in thirteen days, and as more people hear about the investment opportunities, that time is getting shorter and shorter. The Byfleet property is a prime example of this."
Gandesha added that the three main types of property they target are those close to strong future transport plans, such as Crossrail, regeneration areas such as Croydon and opportunist homes such as the Byfleet property.
Is crowdfunding the future of buy-to-let? Get involved in the debate by tweeting us @What_House
Image: Property Partner