Member Article

Property crowdfunding platform launches in Stockton-on-Tees

Property crowdfunding platform, Propnology has chosen Stockton-on-Tees as the location for its first investment offering.

The platform, which allows individuals to invest in buy-to-let properties from as little as £500, has secured a £22k discount on a new build 4-bedroom, 3-storey townhouse on the Kingsmoor development. Due to be completed by the developer in December 2015, the property, at 1380sq. ft. in size, represents a capital value of £83.33 per square foot.

To maximise returns the property will be retained for an investment period of 5 years. Rental income will be paid to investors on a quarterly basis and, at the end of the investment term, investors will receive their original investment together with a share in the capital growth, in direct proportion to their level of investment.

The property is projected to return a net dividend yield of around 4.6% and, when combined with capital growth, produce 10% annualised returns of up to 10%.

Authorised by the Financial Conduct Authority (FCA), Propnology employs technology to remove the barriers to entry, traditionally associated with buy-to-let.

Owen Angel, co-founder of the platform said, “This particular opportunity is open to individuals looking to invest in a buy-to-let property, with a low entry point of just £500. With the recent development and growth of new businesses in the area and increases in employment, we believe the local property market will follow suit.

“We are therefore delighted to have secured such a strong investment in such a vibrant and thriving market town”.

This was posted in Bdaily's Members' News section by Ellen Forster .