One of the advantages of investing with The Property Crowd is that the hard work of finding ideal investment properties is done for you.
When it comes to investing, we present you with the available properties and you can rest easy knowing that we’ve put the work in to ensure it’s a great investment.
We work with several property management companies to help us source suitable properties. These property management companies know our strict selection criteria and present us with properties that they feel will be a good fit.
Properties become available for several reasons. From current landlords choosing to exit their investment, owner-occupiers who are moving on and developers selling newly built properties.
What do we consider for our properties?
There are several criteria that we look at before we even consider putting a property on The Property Crowd dashboard. These criteria include the quality of the property itself, location and yield.
Choosing a property of the right quality is very important to us.
We are committed to providing tenants with warm, dry houses which means we need to ensure that properties going onto our dashboard are free from damp and other moisture issues.
We consider insulation, gaps around windows and doors, flooring and other factors which will contribute to the property’s warmth and dryness.
We also need to consider how much maintenance the property requires. We don’t want to be spending any more of the rental income on maintenance than we have to. That means that we look for properties that are unlikely to require regular intervention.
At the same time, we’re aware that buying a property that is in perfect condition or renovated to high specifications means that the yield of that property is likely to be lower.
We want our properties to increase in value and location is often a big factor in that. Choosing a property in a high growth area gives us the best chance to ensure that a property is profitable and will result in good dividends for our investors.
We also want to make it as easy as possible for people to rent our properties and choosing a great location is critical to achieving this.
Proximity to schools, amenities, shopping facilities and transport routes are all important for a tenant considering a potential property.
Yield is a very important factor when we are choosing properties. We understand that one of the primary reasons people are investing with The Property Crowd is to grow their savings. The goal of course is to end up with more money than you started with.
This is primarily achieved through the monthly returns you’ll receive. To ensure that the returns are as healthy as possible, we weigh up the yield of every property we consider.
That means we consider the cost of the property and the expenses it will incur. We then compare this to the rental income we expect the property to earn.
This gives us a yield calculation and allows us to determine whether it’s a worthwhile investment.
Once we’ve identified a property that fits all these criteria, due diligence is carried out. This means that we source the property’s LIM report, get an independent valuation and commission a building inspection and meth test.
We carefully analyse the results of these to ensure that there are no surprises before approving a property for funding.
At last, it’s time to invest. If we’re satisfied that a property has made it through our strict selection process, we list the property on The Property Crowd dashboard and make it available for our investors to fund.