CrowdProperty launched in Australia in May 2021, bringing the UK’s success story of property finance by property people down under.
Until now, investing in our project loans has been the domain of ‘wholesale investors’ — a small 16% of Australians with a certain wealth profile. This is commonly the case for investment funds in real estate debt.
Today (16 March 2023), we’re thrilled to announce that CrowdProperty Australia is now available to all Australian investors, not only people and institutions of a certain wealth level. We’re realising our aim of democratising financial access to short-term real estate development debt.
With more investors we can help build and renovate more Australian homes. Together we can build a better future.
Why invest with CrowdProperty?
We consider the key benefits of an investment in the CrowdProperty Retail Investment Trust to be
- Target income returns up to 8.5% p.a.,* depending on the terms of the project loan
- First mortgage secured loans
- Investors can initially invest a minimum of $2,500
- Generally short to medium term investment periods – between 6 to 18 months
- Investors can choose to diversify their investments across a number of selected loans, borrowers and geographic locations
- All project loans will be professionally managed by CrowdProperty
- The option of reinvesting capital and income into new project loans which will be added to the platform over time
How it works
- Investors register online at www.crowdproperty.com.au/investors.
- Download and read the Product Disclosure Statement (PDS), and confirm you meet the investor suitability questions for the CrowdProperty Retail Investment Trust (to meet our ‘target market determination’ requirements).
- Follow the simple online application – make sure you have your ID to hand.
- Now you’re ready to go — review live projects on your dashboard and put pledges against any you want to invest in.
- Our property experts take care of the rest including specialist due diligence, project loan selection, and loan monitoring.
- Once the project loan is paid back, we aim to return (or you can reinvest) your capital and/or income.
Minimum investment is from $2500. We offer target income returns of up to 8.5% p.a.*
Our investment terms typically run from six to 18 months.
Who can invest?
Australians over 18 years old can invest once they’ve completed a registration on the CrowdProperty platform, including the investor suitability questions. Investors can include:
- Individuals
- Self-Managed Superannuation Funds (SMSFs)
- Other trusts, e.g. discretionary trusts
- Companies
Success to date
Since launching in Australia, we have reviewed over $445m in project loan applications, selecting just 4% for funding, a measure of our appeal to small-scale developers and our strict due diligence process for loan selection. Our UK sister company, which has lent over AU$536m over eight years, has a 100% record of returning capital and income to our investors, a record we’ve also continued here in Australia in our first 18 months, almost all of whom invested in new projects or phases straight away.
What’s next?
We have an exciting pipeline of projects coming to the platform for investment. To be eligible to invest and take advantage of investing in project loans (also known as private real estate debt) — an asset class usually reserved for wholesale investors — register now.
