After being awarded full authorisation from the Financial Conduct Authority, a new property crowdfunding platform – Propnology – is preparing for its launch next Monday.
The main aim of Propnology is to change the future of property investment by removing the barriers to entry – something that is traditionally associated with buy-to-let – while at the same time using technology to deliver an innovative, fully automated, online experience.
“After a 9-month application process with the FCA, we are excited to be one of the first property crowdfunding platforms in the UK to be granted full authorisation,” co-founder Owen Angel said. “We believe this will give our investors an increased level of confidence in this emerging sector.”
An experienced team of property professionals thoroughly and systematically check every Propnology investment prior to it being listed. Detailed property information, financials, photos and documents can then be viewed by investors to help them make an informed investment decision.
Properties are retained for an investment period of between 3 and 10 years. Investors can choose the amount they wish to invest, with minimum investment thresholds from as little as £500, while Propnology aims to target property at below market value and with a strong yield potential.
Investors will receive 100% of the net income once a property is generating rental income. However, profits will be distributed, in the form of a dividend, on a quarterly basis.
The platform's fees work in two ways. Firstly, a one-off funding fee of 5% on the purchase of the investment. Secondly, a deferred administration fee – equal to 10% of the net profit generated upon disposal – in lieu of monthly or annual administration charges. This is to ensure that a strong yield is maintained and the level of dividend income remains at its highest throughout the investment term.
“Propnology have established strategic partnerships with key players who understand their local market and the value that crowdfunding brings,” Paul Lamm, the other co-founder, said.
“Our strong relationships with developers, estate agents, sourcing and investment companies provide unique access to opportunities that would otherwise be inaccessible. Our partner network is being continually developed to ensure we offer a geographically diverse choice of investments, across different property classes, to meet the individual investment objectives of our investors.”
Ahead of Propnology's official launch on October 19th, investors can now view the site - www.propnology.co.uk - and register their interest.