Real Estate Made Accessible
Property is tangible — you can see it, touch it, and rent it out. Crowdfunding platforms now make property investing accessible to everyone.
Three Ways to Invest in Property
1. Direct Property Ownership (Traditional)
Buy a house or flat yourself, become a landlord, collect rent, and hope the property value increases.
Upfront Cost: £50,000+ deposit (20% of £250,000 property)
Ongoing Costs: Mortgage, maintenance, repairs, insurance, letting agent fees
Time to Sell: 3-6 months (illiquid)
Risk: All your money in ONE property
Hassle: Broken boilers, difficult tenants, legal issues
2. REITs (Real Estate Investment Trusts)
REITs are companies that own and manage income-producing properties (offices, shopping centers, apartments, warehouses). You buy shares in the REIT, just like buying stocks. The REIT collects rent from tenants and pays you dividends.
Upfront Cost: £100-£1,000 (buy shares like stocks)
Ongoing Costs: None (REIT handles everything)
Time to Sell: Instant (sell shares anytime)
Risk: Diversified across 50-200+ properties
Hassle: Zero - professionals manage everything
Income: Quarterly dividends (REITs must pay 90% of profits)
How to Invest in REITs
- Open a stock brokerage account (Trading 212, Freetrade, Hargreaves Lansdown)
- Search for REIT stocks or REIT ETFs
- Buy shares starting from £100
- Receive dividend income every quarter
3. Property Crowdfunding Platforms
Online platforms let you invest small amounts (£1,000-£10,000) into specific property development projects. You share ownership and returns with other investors.
Upfront Cost: £1,000-£10,000 per project
Returns: 5-12% annually (higher risk, higher reward)
Liquidity: Low (money locked for 1-5 years)
Risk: Project-specific (development could fail)
Direct Property vs REITs: Side-by-Side Comparison
| Factor | Direct Property | REITs |
|---|---|---|
| Initial Investment | £50,000+ deposit | £100-£1,000 |
| Liquidity | 3-6 months to sell | Sell instantly |
| Diversification | 1 property (high risk) | 50-200+ properties |
| Maintenance | You handle repairs, tenants | Zero hassle |
| Annual Costs | £2,000-£5,000 (repairs, fees) | £0 |
| Income | Rent (minus void periods) | Quarterly dividends |
Mathematical Proof: £50,000 Investment Over 15 Years (Approximate Final Values)
| Investment Type | Initial Amount | Growth Rate | Annual Costs | Final Value (15 years) |
|---|---|---|---|---|
| Direct Property | £50,000 | 5% (property growth) | -£3,000/year | ~£61,000 |
| REITs | £50,000 | 8% (REIT growth + dividends) | £0 | ~£158,000 |
REITs Win by £97,000!
With REITs, you avoid £45,000 in maintenance costs over 15 years, enjoy instant liquidity, and benefit from professional management across hundreds of properties. Plus, you can start with just £100 instead of £50,000.
Note: These are approximate calculations based on historical averages. Actual returns will vary depending on market conditions, property location, and individual circumstances.
Why This Matters
Property combines growth with passive rental income.
Book a ConsultationImportant Investment Warning
This content is for educational purposes only and does not constitute financial advice. We are not FCA-regulated financial advisers. Investments can go down as well as up, and you may lose some or all of your capital. Past performance does not guarantee future results.