ASSETZ Group’s new buy-to-let platform Assetz Exchange is set to go live today (16 January).
Assetz Exchange has been running a private crowdfunding round on Seedrs which will also open to the public in the coming weeks, having so far raised around £50,000.
The new platform will be run by staff from the group’s buy-to-let estate agent subsidiary Assetz Property, rather than its peer-to-peer lender subsidiary Assetz Capital.
It will let investors fund loans via a special purpose vehicle which will buy and manage the properties.
The properties will be sourced by Assetz Property’s network.
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Investors will be able to have their say on the performance of the property management company and each SPV will have its own exit plan, although users can sell their stake on the aftermarket.
The first project – which has already been made available to pre-registered users – is for a student flat in Leeds paying a rate of 5.94 per cent.
The minimum investment for all projects will be £15.
Stuart Law, chairman of Assetz Exchange, which is regulated through permissions from Assetz Property, said the idea was to help alleviate rather than contribute to the housing crisis.
“We want to purchase either existing tenanted properties or fund the creation of new ones,” he told Peer2Peer Finance News.
“Assetz Exchange provides not only rental income to investors who share in a property investment, but also exposure to gains and losses from the underlying property price changes.
“The business is aimed at a different type of investor to Assetz Capital and we expect that Assetz Exchange will replace many other old-style buy-to-let property agency sales over time, as a result of being far simpler and more tax efficient than traditional buy to let. It is still a crowdfunding approach however, and one that makes buy to let far easier to access for the mass market.”