Investing in property without buying a whole property

Aspatria

I would like to put some money in property as a long term investment. I do not have sufficient to buy a whole property outright and I do not want the hassle of buying to let. Is there a way that I can invest in property with other likeminded people?

tom9980

Buy property funds with a Stocks and shares ISA or from inside a SIPP you get tax benefits doing it that way too.

Marine_life

I invest with these people:

https://www.propertypartner.co/

SmashedAvacado

People invest directly in property for the leveraged returns. if you co-invest you typically can't borrow to do that; so your best bet is investing into a fund or a REIT that leverages its investments. A REIT is a traded property fund that has internal tax benefits.

Clubbing up together with strangers via a blockchain or other portal is likely to make loads of money....but just not for the investors. Such portals at the moment don't have liquidity to become properly tradeable.

Or you could buy shares in an estate agents....or similar.

dimbo61

Not sure about estate agents or letting agents in the current market as investment !

davidmcn

SmashedAvacado wrote: »

Or you could buy shares in an estate agents

Hardly the same thing though is it? Estate agents can (and do) go bust, leaving you with shares worth zilch. Property prices can go up and down, but it's almost impossible for the value to vanish in a puff of smoke.

quotememiserable

Check out the housecrowd. I think that's what you want.

steampowered

You would be much better off investing in a stocks & shares ISA.

If in doubt, just purchase a tracker fund. Vanguard lifestrategy 60 is a good start.

If you really wanted to, you could buy shares in REITs (i.e. companies which buy and rent out property).

SmashedAvacado

davidmcn wrote: »

Hardly the same thing though is it? Estate agents can (and do) go bust, leaving you with shares worth zilch. Property prices can go up and down, but it's almost impossible for the value to vanish in a puff of smoke.

Not that impossible if you buy a buy to let with a mortgage....which is what most people will do. If interest rates change, then you could lose the lot. Buy a property with 15% deposit, watch the value fall by 15% you are left with nothing.....and obligations to banks, agents, (possibly) the tax man, your tenants in the meantime.

My point is that companies like estate agents generally have good fortunes when the market is good and bad fortunes when the market is bad. So if you want exposure to a market, investing in someone who's fortunes follow the market is no bad thing.

davidmcn

SmashedAvacado wrote: »

If interest rates change, then you could lose the lot. Buy a property with 15% deposit, watch the value fall by 15% you are left with nothing

Ok, but I don't think the OP was proposing to enter into a mortgage.

tom9980

SmashedAvacado wrote: »

Not that impossible if you buy a buy to let with a mortgage....which is what most people will do. If interest rates change, then you could lose the lot. Buy a property with 15% deposit, watch the value fall by 15% you are left with nothing.....and obligations to banks, agents, (possibly) the tax man, your tenants in the meantime.

My point is that companies like estate agents generally have good fortunes when the market is good and bad fortunes when the market is bad. So if you want exposure to a market, investing in someone who's fortunes follow the market is no bad thing.

Arguably the market for agents will be turning bad with low sale volumes and the ban on letting fees, it might not be a good time invest.