Could crowdfunding property in UK markets be your solution for buy-to-let?

With mortgages becoming harder to secure in the current property climate and more people looking to become financially independent by securing their own homes at a younger age, buy-to-let property investment in UK markets is seriously tempting.

The basic principle

Buy-to-let property investment is essentially purchasing a property with the intention of renting it out to other tenants. With a diversified portfolio of properties you can make serious money, whether you invest all your time solely into purchasing, renovating and letting homes or maintain a smaller portfolio as a side earner for some extra cash.

However, buy-to-let property investment in the UK requires serious investment and can incur many costs, from legal fees, renovation and surveyor's checks. Renovating alone can significantly add up, on top of paying for a trade worker's time you'll have to purchase materials. While some properties can be purchased cheaply they will often require additional work. This can range from simple redecoration or fitting new facilities, such as a bathroom, to completely reinstalling plumbing and heating systems. Older properties may require roof repair, which can be costly, or you may even consider knocking down walls to extend the property and increase its letting value.

Once you're established and have built up a steady income, it becomes easier to diversify your portfolio, but getting started can be daunting as it requires thousands of pounds worth of investment that you can't be sure you'll make back. However, there is a solution.

Using Crowdfunding

Crowdfunding property in UK markets allows you to become a buy-to-let landlord without the hassle of funding it independently. Instead, you and a group of peers own a joint stake in the house you're purchasing. There are still fees to consider: crowdfunding property companies take a percentage of all fees to cover their overheads, advertising and legal costs. It can also be difficult to exit the arrangement because of the parameters set by individual companies, so you may be in it for the long haul unless you can find a buyer for your share in the home.

Ultimately, any investment is a risk. Before deciding to purchase a buy-for-let property in UK housing markets, whether independently or via crowdfunding, you should ensure its a - potentially long term commitment - you're willing to make. But nonetheless Crowdfunding property in UK markets could be a brilliant solution if you're looking to become a landlord without the burden of doing it by yourself. Investment in property comes with risks as well as the possibility of rewards.

Investment in property comes with risks as well as the possibility of rewards.

Source : articlesbase.com