Property Crowd - 11%+ yield on crowdfunded real estate deals

I have to say I was pleasantly surprised how easy I was able to register. As I have no acceptable photo ID I struggle with any platform that requires any form of copy of passport/DVLA. I also find it somewhat archiac when ID can usually be established by electoral roll or credit reference agency checks. Quite a few of the equity/restricted investor platforms seem to automatically request docs without any attempt to establish ID electronically and I suspect it is often down to the AR principal rather than the platform itself. Gallium is usually the most straightforward Ive found, though obviously not for non UK residents. High st banks are still known to request certified docs (by post) if you dont have an electronic footprint and people charge to certify them.

On the subject of exit fees, its worth pointing out that the Property Crowd was bought by the exisitng owners in 2016 and relaunched so previous comms arent possibly valid.

Most platform dont allow you to see details unless you are registered, thought the equity platforms tend to be more open than the lending platforms.

Guess the unknowledgeable member of staff wont be looking forward to his bonus like Mr T is in his latest blog on the PC site 

Zero coupon bonds or any debt issued at a deep discount (those issued at 0.5%pa+ discount to maturity value) are generally taxed as income at maturity.  There are a few exceptions to this treatment eg for life insurance policies, but none would seem to apply in this case.  There is a benefit for non-UK resident investors as the the return is received free from withholding tax even though the discount has a UK source.

It is also worth noting that in addition to specific income treatment of zero coupon bonds, there are income tax legislation on disguised income which acts to tax as income any amounts received that is economically equivalent to interest.  This is a fairly basic tax avoidance 101 measure to prevent structuring of debt products so to avoid recognition of income or mis-characterising disguised interest as a capital gain.

I'm another that would consider investing with you if I was able to get past the identification stage, UK resident, 19 years at present address, director of 4 companies and I cant be verified. I don't mind uploading documents, but I do mind taking valuable time out during my 7 day working week to get someone to sign a document to say I am who I say I am, and pay them for the privilege of that service, it is a shame as one or two fellow investors have had encouraging things to say about you.

Some exciting news to share with everyone here on P2P Independent Forum:

Dear Investor,

We are pleased to announce that investors in our recently-closed deal - offering an annualised 11.2% yield via exposure to a senior debt position secured against a Grade II Listed asset in Greater London - will have their bonds redeemed early next week due to the underlying borrower having repaid the loan early.

Investors will receive the pro-rata interest due to 5 April 2017 upon redemption, which translates into an exceptional annualised return of 27.4% over their investment term - more than double the original projected IRR.

This welcome enhanced return highlights the strength of our model, which involves partnering with experienced principal lenders in order to offer institutional grade investment opportunities that deliver superior risk-adjusted returns.

Once the bond is formally redeemed, the proceeds will be available next week in your Property Crowd dashboard for withdrawal or reinvestment into other Property Crowd deals. This includes the deal that we currently have open for investment, which offers an attractive risk-adjusted return profile similar to the one being redeemed early -- an annualised yield of 12% on senior debt secured against a prime asset in the heart of Liverpool's iconic waterfront, which is a UNESCO World Heritage Site.

The total raise for this deal is now £844K as the Principal Lender has elected to retain a larger proportion of the loan facility.

Our first deal was fully funded in a fraction of the time that we had allowed for and we have every reason to believe the same will hold true here.

Keep in mind that all funds received by 1 March 2017 will start to accrue interest from this date.

You can access our deal room here.


Kind regards,

The team at Property Crowd

charles,


Are there any plans to lower the £5000 minimum investment?

I don't see anything on your site explaining in detail how your investments are structured. Do you have a FAQ?

What happens to an investment in the case of platform failure?

Liz, watch this space. We should have some good news on this ahead of the new UK tax year.