Property Regions would allow people to invest in property in the UK. The platform would provide investors with another asset to diversify in and we offer a way for people to get onto the property ladder.
Target areas will be East Anglia and the East Midlands, which we consider as growth regions, before branching out to other regions in the UK.
Minimum investment will be £250 and residential property will be the initial focus.
The crowd funding platform will be used to offer investment in specific properties. Investors will benefit from any rental income and from the potential capital growth of the property. There will be a mechanism in place should investors wish to exit early.
Once we have traction we envisage purchasing portfolios in the chosen regions as well as individual properties, allowing the platform to grow faster.
Initially the properties will be fully funded with equity. After 9-12 months we would look at employing leverage for some properties in order to increase the possible returns on equity.
We intend to offer a way for people to invest in property in regions of the UK where property can cost less than new build cost, and prices can be below pre-crash levels. Investing in these regions of the UK diversifies away from the economies of the main cities, and we believe helps these economies grow further.
We believe this offers people a chance to invest in property in regions they would not otherwise be able to due to a lack of local knowledge and resources. The platform also allows people in these regions to invest in their own areas with small sums of money.
The English Housing Survey found that people are finding it harder to afford to buy property. It states that between 2003/4 and 2013/4 the percentage of owner-occupiers in the 25-34 age range has dropped from 59% to 36%.
The Property Regions platform will allow these people who cannot afford to buy their own home to keep track of the property market by investing smaller sums in property via our platform.
According to The Council of Mortgage Lenders 64% of first time buyers required help from “Mum and Dad” which is up from 30% pre credit crunch. Property Regions can provide people with a first step on the property ladder in order to build sufficient equity to put down a deposit on their first home.
We also enable people to diversify over a number of properties with a small amount of money, and we offer people the chance to invest more widely in their own region.
Property is generally viewed as an illiquid asset, which inhibits some people from investing. Our platform is being designed to enable investors to trade their shares in a property, creating liquidity, prior to the property being sold.
Investment into property via Property Regions will allow people to benefit from any income and capital growth that is generated. We believe that this can offer an attractive alternative to holding cash in a bank.
Substantial accomplishments to date
The founder has spent the last 5 years researching, purchasing, and investing in his own properties in these regions. He has developed strong local networks and knowledge, and believes he has a deep understanding of property in these areas. Having invested in properties in the regions himself, he is putting this knowledge into Property Regions to grow a unique business so others can also benefit from these opportunities.
Property Regions has a strong team that has experience in property, investment, and tech.
We have instructed a team of professionals in order to create the business, platform and its related infrastructure.
Property Regions are in the process of developing the technology platform and have a pipeline of properties to invest in once the platform launches.
We have a strong press strategy in place, and a track record of successfully getting mainstream press coverage in the past.
Use of proceeds
Funds will be used to build the front and back end of the technology platform, and complete the legal work necessary to launch a crowd funding platform.
We will create the templates and contracts for the companies (SPV’s) that will purchase the properties, and their respective Information Memorandums, as well as verification that all the wording on the website fits within FCA regulations.
A small portion will go towards working capital which may also include some PR and marketing costs.
The front and backend will be built in a way that maximises user experience, and user friendliness. Our CTO has extensive experience in supervising major tech projects specialising in User Interface and User Experience and will advise the tech design and construction work. As with the legal documents, we will be investing in the tech infrastructure thoroughly at the beginning to build a scalable platform that can attract as many customers as possible, whilst benefitting from economies of scale.