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Allbricks is looking to disrupt the market by consolidating investments in UK residential property as property investors struggle with buy-to-rent rates and homebuyers see prices fall.
Through its innovative crowdfunding platform, allbrick Buyers and investors can co-invest in a home by dividing the investment into units called “bricks.” The buyer buys as much as he likes (minimum price is he’s £10,000 or his 1% of the property value, whichever is higher), the investor buys the rest, and the cost of stamp duty is split proportionately. Buyers then pay market rent to investors based on the number of bricks each owns.
This unique approach allows investors to provide regular rental income and potential capital gain opportunities without removing the housing stock from the buyer’s circulation. Each home is assigned a property manager, building insurance, safety checks, and an annual repair budget, reducing general administration hassles. This socially responsible co-investment model also empowers people to realize their dreams of owning a debt-free home in the community they love.
Investing in Allbricks means:
- No Mortgage, No Loan, Opportunity to start a property portfolio from just £2,000
- Access to the existing UK housing market is estimated by Savills to be worth more than £8 trillion[*]
- Joint investment with enthusiastic buyers who value property maintenance
- Peace of mind knowing that landlords have less hassle finding tenants, vacancies, cleaning fees, and basic safety checks are covered
Allbricks offers current landlords an easy way to add to their portfolio without worrying about the direct impact of rising mortgage rates. It will also open up the existing UK housing market to institutional investors.
Agencies have typically focused on developing new construction, but planning backlogs and shortages of materials and labor have made these opportunities more challenging. Allbricks offers the same types of returns (monthly rental income opportunities and potential capital gains) as other real estate investment routes in an entirely new market.
Allbricks is also ideal for investors who:
- You want to invest in residential property but don’t want to manage or maintain it yourself
- I don’t want the impact of rising interest rates on my mortgage
- Prefer the flexibility of real estate investments across multiple properties and areas
- I want to invest in real estate for children and help create wealth that transcends generations.
Allbricks CEO Shahram Shaida said:: “Residential property is traditionally one of the safest long-term investments, but tighter regulation and rising interest rates are impacting the profitability of our buy-and-sell portfolios. We are here to consolidate our investments and take advantage of the burgeoning crowdfunding market to offer an alternative that democratizes homeownership and real estate investing for the first time.
“We allow investors to diversify by investing in multiple properties rather than buying and renting one property. Investors are equally invested in keeping properties in good standing We offer year-over-year growth potential in line with the residential real estate market and regular passive income opportunities For socially conscious investors, there is an opportunity to profit from helping people own their dream home, stay in their community and build a future for their families.”
Mark Witherspoon, Advisor to the Board of Allbricksand has held various positions in both residential real estate and retail financial services over the past 35 years. Avoid the direct risk of rising mortgage rates while changing the traditional power relationship between homeowners and investors. This not only allows investors to benefit from the potential increase in property values, but also avoids most of the headaches typically associated with property management. “