Ethical investment platform MercyCrowd has launched what it claims to be the first international crowdfunder to enable investment in debt-free, buy-to-let properties
Platform users can buy equity in properties in Britain, France and Dubai with typical rental returns of between 3.2% and 7.2%.
MercyCrowd is responsible for all property management issues, including finding tenants, collecting rent, maintenance and charges.
The company’s equity-only model aims to help shield investors from the negative leverage risk found in a flat or falling housing market.
Anouar Adham, founder and CEO at MercyCrowd, said: ‘’We are delighted to officially launch MercyCrowd and offer people the chance to realise the benefits of investing in property without the drawbacks of taking on debt.
‘’By focusing on an international outlook through our diverse selection of properties across Britain, France and Dubai, we believe there is something of potential value for a variety of investors, from a first-time investor to those with dozens of assets.
‘’The economy’s continual reliance on debt is concerning, which is why MercyCrowd is an equity-only platform.
‘’Debt-free property ownership is the next big thing and we want to be at the forefront of the trend.’’
MercyCrowd sources buy-to-let properties and negotiates a price before listing it on the platform.
Once the investment target has been reached, the property is then purchased and let out before typically being sold three to five years after purchase.
Rental returns are proportional to an investor’s equity holding and paid on a quarterly basis.
Investors can also benefit from potential capital appreciation.
