As property investors struggle with buy-to-let interest rates and home buyers are priced out, Allbricks is here to disrupt the market by unitising investment in UK residential property.
Through its revolutionary crowdfunding platform, Allbricks enables buyers and investors to co-invest in homes by breaking down the investment into units called ‘bricks’. The buyer purchases as many as they want (with a minimum value of £10,000 or 1% of the property price, whichever is higher) and investors buy the rest, with the cost of the stamp duty split proportionally. The buyer then pays the market rent to the investors based on the number of bricks they each own.
This unique approach offers investors the opportunity for regular rental income and potential capital gains without removing housing stock from circulation for buyers. It reduces some typical management hassles too, as each home gets a property manager, buildings insurance, safety checks and an annual repairs budget. This socially-responsible co-investment model also empowers people to realise their dream of home ownership, without debt, in the communities they love.
Investing with Allbricks means:
- No mortgage, no loan, and the chance to start a property portfolio from just £2,000
- Access to the existing UK residential market, estimated by Savills to be worth more than £8tn
- Co-investing with committed buyers who care about the upkeep of the property
- Fewer landlord hassles, like tenant searches, void periods and cleaning fees, and the peace of mind that essential safety checks are covered
For current landlords, Allbricks offers a simple route to add to their portfolios without worrying about the direct impact from mortgage interest rate rises. It also opens up the existing UK residential market for institutional investors.
Institutions have been typically focused on new-build developments, but these opportunities are becoming more challenging due to planning backlogs and shortages in material and labour. Allbricks offers the same type of return as other property investment routes – the opportunity for monthly rental income and potential for capital gains – in a whole new market.
Allbricks is also ideal for investors who:
- want to invest in residential property but not manage or maintain it themselves
- are priced out of the buy-to-let market or don’t want the impact of rising mortgage interest rates
- prefer flexibility in property investment across multiple properties or areas
- want to invest in property for their children, helping to create generational wealth
Allbricks CEO, Shahram Shaida, commented: “Residential property has traditionally been one of the safest long-term investments, but tightening regulations and interest rate increases have impacted the profitability of buy-to-let portfolios. Allbricks is here to offer an alternative, unitising investment in UK residential property and using the fast-growing crowdfunding market to democratise home ownership and property investment for the first time.
“We enable investors to diversify by investing in multiple properties rather than one buy-to-let. And because each home buyer co-owns the property with the investors, they’re equally invested in keeping it in good shape. We offer the potential for year-on-year growth in line with the residential property market and the opportunity for regular passive income. For the socially conscious investor, there is a chance to profit from good by helping people get the home of their dreams, stay in their communities and build a future for their families.”
Mark Witherspoon, board advisor to Allbricks, and who over the last 35 years has held a wide variety of executive roles in both residential property and retail financial services, had this to say: “Allbricks represents a new property investment concept that provides an opportunity for regular monthly income, helps diversify across multiple properties and UK locations, and sidesteps the direct risk from rising mortgage rates, all while changing the traditional dynamic between homeowners and investors. It allows investors to not only benefit from the potential rise in property values, but also to avoid most of the headaches usually involved with property management.”
The original article was published here on 08/02/2023