Crowdtolive, which lets people own their home “without incurring debt,” whilst investors can get the benefits of property investment, has raised 120% (£482,950) of its £400,004 target via Seedrs from 158 investors (at the time of writing) with 20 days currently left in the firm’s crowdfunding campaign.
Located in London, United Kingdom, Crowdtolive operates in the Finance & Payments (Digital B2C) sectors.
Incorporated in August of 2016, the firm reports a valuation (pre-money) of £14.8 million.
The company’s investment summary is as follows: Type Equity; Equity offered: 3.17%; Share price: £9.96; Tax relief; EIS.
- 15,000+ sign-ups on the platform
- Directly regulated by the FCA
- Over 5,000 properties submitted on the platform
- Part of several Accelerator Programme (Barclays, Natwest…)
Key features: Secondary Market; Seedrs nominee min. £19.92 +; Direct investment min. £100,000.00 +.
As noted in the update, CrowdToLive claims it is “an ethical-driven online platform connecting home buyers and investors to finance and invest in residential properties through shared ownership.”
The increase of average house prices “by over 67% in the last decade has caused an affordability crisis in the UK housing market.” Full-time employees “needed to spend 9.1 times their annual salary on buying a home in 2021, compared to 7.9 in 2020 and 3.5 in 1997.”
With lenders multiplying the household income by 4 to 4.5 on average for the mortgage amount, homeownership “is out of reach for an increasing number of people.”
On the investors’ side, many cryptocurrencies, “such as Bitcoin, lost over 50% of their value in the last 6 months and some stock market indexes have had a double-digit loss since the beginning of the year.”
At CrowdToLive, they are “committed to helping home buyers move into their dream homes debt-free and allowing investors to generate stable income without the stress involved in tenancy management.”
Through its simplicity, they believe their fee structure “has the potential to generate strong revenue streams.”
Their fee structure is currently comprised of:
- An upfront fee of 3% on each transaction funded on the platform
- A fee of 2% is charged every month on the rent collected
- An exit fee of 1% is paid by the home buyer each time they increase their ownership in the property
As they finance people’s homes, they believe that they “build a great deal of trust with [their] community.” Down the line, they are “looking at using open banking to offer [their] community more financing and investment products.”
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