Propnology, having recently received authorisation from the Financial Conduct Authority (FCA), has launched a new property investing crowdfunding platform in the UK. According to information provided byPropnology, the new site will “change the future of property investment by removing the barriers to entry, traditionally associated with buy-to-let, while simultaneously using technology to deliver an innovative, fully automated, online experience”.
Propnology co-founder Owen Angel explained, “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. We believe this will give our investors an increased level of confidence in this emerging sector.”
The founders of Propnology are taking a different approach in comparison to existing real estate investment platforms. They have decided to steer clear of “self-sourcing” or renovating in specific geographic areas. Propnology states it has built a network of professional partnerships to source property investment offers. By affiliating with local developers and estate agents, who possess valuable local market information, they may provide unique access to compelling investments.
“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,” stated co-founder Paul Lamm.
A quick visit to the site indicates there are no live listings as of today, but Propnology expects this to change soon. Lamm and Angel state that every investment opportunity will “undergoes a thorough and systematic due diligence process” by their team of property professionals. Investors, who may participate for as little as £500, may expect to hold their investment from 3 to 10 years. Propnology will target property at “below market value and with a strong yield potential”, where investors have access to a balance between capital appreciation and income.
According to Propnology, once the property is generating income, investors will receive 100% of the net income. Profits will be distributed, in the form of a dividend, on a quarterly basis.
Propnology will generate revenue in two ways; a one-off funding fee of 5% on the purchase of the investment and a deferred administration fee – equivalent to 10% of the net profit generated upon disposal – in lieu of monthly or annual administration charges.
The investment crowdfunding platform has set October 19th as the site’s official launch date.