Property Partner logo

Property Partner Review

LINKS MARKED * ARE AFFILIATE LINKS.

In this Property Partner review we look closely at the company to see what they have to offer to investors. We look at the inspiration behind the creation of the platform, how the platform works, the fees charged by the company and expected returns, and we also look at the potential risks associated with investing with Property Partner. 

There are many people who would love to get involved in Buy to Let investing, but for a variety of reasons they never make the leap. Some of these reasons may include the hassle that comes along with being a landlord, the deposit required these days in order to get a buy to let mortgage, or even the tax implications that come along with owning a buy to let property.

The above are just some of the problems that potential buy to let investors face, but they are also the problems that the investment platform Property Partner* aims to solve. Property Partner’s investment platform allows you to invest in properties across the UK and beyond, without all of the hassle that comes along with owning a property outright.

With all of this in mind, let’s take a look at how Property Partner got started and also how it all works, so that you can make an informed decision as to whether this is the right property investment for you and your portfolio.

Who Are Property Partner?

For those of you who are completely new to the company, let’s take a moment and talk about who Property Partner are and the team behind the company. Property Partner* was launched at the start of 2015 by founder Daniel Gandesha. In a video which can be found on their website*, Daniel explains how he’d always thought about investing in property – particularly in areas that he could see were up and coming and had the potential for strong returns – but he never made the leap due to the hassle involved and barriers to entry for individual buy to let investors. His experience led him to create Property Partner, a platform where individuals and businesses could invest in specific properties in their chosen location, and receive a share of the rental income and capital growth, without having to manage the properties themselves.

Now you know a little more about the founder and why Property Partner came about, it’s worth giving a mention to the other people involved in the operation. For example, it’s encouraging to see that the company has received financial backing from investors who also funded other successful startups such as Just Eat, Skype, Funding Circle and Zoopla. The company also has a team working away behind the scenes with impressive credentials, including Robert Weaver who was previously the Global Director of Residential Property at RBS, and Ed Wray who co-founded Betfair and is a non-executive director at Funding Circle. You can read more about the full team on the Property Partner Website.

Property Partner has also seen impressive growth in assets under management in the past year as can be seen from the figures below.

Property Partner assets under management up 70% this year

How Does Property Partner Work?

The Property Partner platform* works in much the same way as a standard stock exchange, in that you can buy shares in a property that the company either already owns, or plans to buy, and you then receive your share of the rental income on a monthly basis in the form of a dividend. Each property is listed on the site with a projected dividend yield to help you to calculate your projected returns and Property Partner state that, to date, they have never underpaid a dividend and they have always paid on time.

As far as capital growth goes, this would manifest itself in the value of your shares. All properties owned by Property Partner are valued every 3 months by an independent chartered surveyor. Any capital gains or losses on the value of your investment will then be reflected in the value of your shares in each property.  

If you want to sell your shares at some point and cash in on your investment, then it is a simple process to do so. The first and fastest option would likely be to list your share for resale on the resale market – which the company proudly state is the world’s first stock exchange for property. You can either look for the highest current bidder to buy your shares at the time of asking and sell instantly, or you can set your own price and wait for the right buyer if you’re in less of a rush. The average time taken to sell shares on the platform so far in 2018 has been 3.4 days, if listed below the rolling 30-day weighted average trading price.

Average time to sell Property Partner Shares in 2018 is 3.4 days

There’s also a guaranteed option for investors to cash out at a property’s fair market value after a property has been on the platform for 5 years. A more in-depth explanation of this process can be found on the Property Partner website.

What Fees Do Property Partner Charge?

Property Partner charge a flat one-off fee of 2% to invest in a property on their platform and they don’t charge any fees to sell shares on the resale market.  

What Are the Expected Returns?

How much you can expect to make with Property Partner* will depend a lot on the properties you choose to invest in, as well as the performance of the property market as a whole.

For example, each property listed on the site which is available for investment will come with a projected rental/dividend yield. While this yield is only a projection and can be subject to change, it will give you some idea as to what you can expect to earn each year in dividends.

You can also earn money if a property you invest in increases in value over time. This means that certain properties in certain areas may perform better than others, and therefore the capital growth may differ from property to property.

While past performance is no guarantee of future performance, since it’s launch the average estimated annualised return on Property Partner investments has been 7.1%.

Property Partner has returned 7.1% annually since launch

Who Can Invest With Property Partner?

You can sign up with Property Partner* as an individual or a business investor and the process is quick and simple, meaning you can become a property investor in a matter of minutes. The minimum amount you can fund your account with is £250 and while you don’t have to be a UK resident to invest with Property Partner, they don’t currently accept investors from the US.

Is Your Money Safe With Property Partner?

Property Partner are fully regulated by the Financial Conduct Authority, and any cash held in your Property Partner account is protected by the FSCS up to the current limits. That being said, as this is a property based investment, your capital is at risk and the value of your Property Partner shares can rise as well as fall. The FSCS also will not cover any funds that are invested into property via your Property Partner account, it will only cover the cash you have sat there which you are waiting to invest or withdraw.

What Are the Risks?

It’s good to know that Property Partner are up-front about the potential risks of investing via their platform, and they have outlined the main ones on the ‘Key Risks’ page of their website. These risks include the potential to receive less than the estimated rental yields and the situations in which this may occur, the possibility that you may have to wait to find a potential buyer when selling shares, the fact that property prices can rise as well as fall and therefore you may get back less than your initial investment, and the potential that the company may need to sell a property unexpectedly due to factors beyond their control and the implications of this.

What Are the Tax Implications?

Any dividends you receive from your Property Partner investments will be taxable in the same way that other stock market dividends are. The same is also true of any capital gains or losses you may make on your Property Partner shares when you sell or exit your investments.

Property Partner Reviews

While we hope that you are enjoying our review of Property Partner*, we also feel that it’s important to see how others have found their experience of investing via the platform. On this point it’s good to know that the company currently have a 94% service rating on the review site ‘Feefo’ based on 41 reviews over the past year. There are a total of 346 all time reviews on the site.

Property Partner Reviews on Feefo are 4.7/5

Is Property Partner for You?

We hope that this review has helped you to decide whether Property Partner is the right way for you to get involved in property investment. While the platform doesn’t completely remove the risks associated with property investment, it does remove a lot of the hassle and also many potential barriers to entry. It is quick and easy to sign up online* and once you’ve funded your account you can start investing in property in a matter of minutes.

If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader.

Leave a Reply

Your email address will not be published. Required fields are marked *