Hyde Park Property

13 days left
Minimum Target €100,000
Total Target €130,000
Already invested 0
Investors 0
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Invest in Hyde Park Property

There is no place like central London for building a property business, with Paddington being a favorite among many investors. Easy access to transport links as well as close proximity to the landmark Hyde Park greens and Oxford street shopping make this location the perfect spot for property hunters from all over the world. With stamp-duty scrapped for smaller properties in the UK until the Spring of next year, now is the perfect time to invest and expand buy-to-let property portfolios.

The currently raging pandemic has seen people flock from larger shared properties to smaller self-contained units, which offer the ability to isolate more effectively from others. This has led to an increased rental demand of studios and one-bed apartments. After careful consideration, we have therefore taken the decision to invest in a spacious studio flat within just a 3-minute walk from Paddington Station to expand our letting portfolio.

The company has already established itself on the London’s buy-to-let market with a mortgage-free property to let, conveniently situated just a stone’s throw from the apartment that we have set our eyes on this time around. Being located in close proximity to each other makes managing the properties easier and cheaper by creating economies of scale.

Because cash-buyers are preferred to mortgage-buyers and can, therefore, demand significant discounts on the price, we have decided to partner with TFGcrowd to raise €130,000 in financing, with a minimum target of €100,000 to secure the deal. For your trust and support, we are offering the potential investors an annual interest rate of 19,1%, to be paid out in monthly payouts throughout the loan term of 12 months.

Interest rate payments start calculating from the day you make your investment!

The following pledges secure the loan:

  •  A Corporate Guarantee

Choosing to borrow through TFGcrowd

  • Property in London is always in demand – especially the smaller studio and one-bedroom flats are sold almost as soon as they appear on the market. In this fast-moving market, property sellers are keen to sell to “cash” buyers in order to conclude the sales faster, therefore they offer discounts to the “cash” buyers (i.e., those, who are not arranging a mortgage for the purchase). Discounts are offered, because the deal can be concluded a lot easier and faster, as arranging a mortgage is a lengthy and often quite a challenging process. If funds are borrowed through TFGcrowd, it will be deemed a “cash” purchase, meaning that the company will be able to secure a deal at a much better price from the seller.

  • Being a “cash” buyer will mean that the property can be bought a lot quicker and the company will be able to start making money from renting it out to clients a lot sooner, making revenues for the company right away.

  • Once the property is already bought, it will be easier to re-finance the loan in a bank, by taking out a mortgage.

  • Also, as the company already has a mortgage-free property, it can reap the benefits of taking out a mortgage on both properties at once – cheaper interest rates are offered by banks on property portfolios and larger mortgages, making it easier to expand the property portfolio even further afterwards.

  • At the beginning of July this year, the UK government took the unprecedented step to abolish stamp duty on all properties up to a value of GBP 500,000 to get the economy growing post the Covid-19 induced recession. This works as an additional monetary incentive for investors to expand property portfolios.

 

Market Outlook

Following a significant disruption earlier in the year, the UK property market has experienced an unexpected rebound in July, with many referring to it as a “mini-boom”. People, who had been holding off during the lockdown or simply unable to make a relocation because of movement restrictions have been making their long-planned purchases in July. The government’s move to scrap stamp duty on properties up to a value of GBP 500,000 has only further fuelled the surge in sales.


Statista reports that although they expect the Covid-19 pandemic to have a negative effect on the second-hand sale of house prices, the rental prices, in contrast, are not expected to suffer much volatility. They forecast a slight decline in rental prices in 2020 of 1%, but a jump of 6.5% the following year and a steady 3-4% growth in the years to 2024. BuyAssociation holds a similar view, based on research findings from previous major events, such as the global financial crisis of 2008 and the UK’s EU referendum in 2016. They portray residential letting investments as a safe haven during economic downturns, reporting that residential rents and tenant demand have remained more stable than sales during past market slumps.

Taking advantage of the scrapped stamp duty, as well as slower than usual second-hand sales of homes, exerting downwards pressure on property prices means that this is an appropriate time to invest in a buy-to-let property, as the yields on the property are expected higher than during usual times. Because rental prices tend to be less volatile to economic impacts than sale prices, this should be a relatively safe investment.

Investing in a self-contained apartment rather than a larger one that could be offered on the rental market as a shared property is also a safer choice in the current health climate, as people are more willing to isolate themselves from the exposure to other people. As the full economic effect of the pandemic is yet to be felt, it is safe to assume that similar to previous downturns, people are likely to move from larger more expensive apartments to smaller and cheaper ones. Smaller properties rarely see a negative impact on rental prices, as it is the bigger ones that usually feel the effects of economic downturns.

Paddington has long been an exceptional location for anyone wishing to spend shorter or longer periods of time in London. Having direct access from Paddington Station to Heathrow it is equally preferred by tourists and locals, which use Heathrow Airport on a regular basis, alike.

The planned opening of the new Elizabeth railway line will only add to the transportation benefits enjoyed by Paddington – linking Reading and Heathrow in the west to Shenfield and Abbey Wood in the east with over 40 stations across the length.


Apart from the excellent transportation links, Paddington is excellently placed to enjoy a quiet stroll across the Hyde Park or the busy shops of Oxford street, all within walking distance from the location, or any of the hundreds of tourist attractions around London, which can be reached from the Paddington tube station. When making an investment in a buy-to-let property, it would be difficult to find a location more suited for the part.

 

 

Loan term
12 months
Interest rate
19.1% per year
Earnings
0