Bangalore: London-based online property service startup company, Property Partner, raises $5.2 Million in a series-A round led by Index Ventures along with existing investor Octopus Venture, Seedcamp and Ed Wray. The London-based startup Property Partner lets anybody invest in the ‘buy to let’ market starting from as little as £50.
Founded in January 2015, Property Partner currently lists properties in London and the South-East of England. The company drives on fundamental secondary market, letting anyone to sell and shares in a property to another user of the site if you want to exit before five years. The sheer expense of investing in property creates incredibly high barriers to entry. Therefore, in order to solve the problems, the company helps in investing and strives to expand across UK and beyond. Today, the company has more than 1,000 investors, sums ranging from £50 to £50,000.
Addressing residential property using stock-market model is globally unique. Moreover, there are only few residential property crowd funding sites in the UK and crowd funding property developments site in the U.S. Hence, the company has been noteworthy on its ‘resale’ market, citing the first property to be crowd funded via the site; a house based in Croydon where almost 50 percent of its shares traded after it was purchased.
Property Partner itself makes money from side to side as a one-off transaction fee of 2 percent charged on the purchase of your investment. Its standard rate of investment is 12.5 percent (plus sales tax) of rental income. The latter is designed to cover the cost of advertising, letting and managing the property.