Promotion: how to invest in Crossrail

The trains are ready to roll. The question for investors, says Property Partner, is how to gain from house price changes along the Crossrail line.

Crossrail is almost ready to open. In May the first trains will begin running between Liverpool Street and Shenfield in the east.

In December 2018 the first trains will run through central London, and in 2019 the full line opens to Reading and Heathrow.

It’s a huge moment for the city. The line – known as the Elizabeth line – is Europe’s biggest construction project, with a £14.8 billion budget.

The 100km route takes in 40 stations, and adds 10% of capacity to the capital’s rail network. The impact on journey times is dramatic. Naturally, this is feeding directly into house prices.

Along the Eastern leg of the line values are up between a 32% and 55% in the past five years, according to data collected from Zoopla by Property Partner.

Forest Gate will be 12 minutes to Liverpool Street, a major reason why prices are up by more than half.

The quiet village of Harold Wood in the Borough of Havering will be half an hour from the City: prices are up 49% in five years.

Interested in residential investment opportunities? Visit Property Partner's site

Far more than a railway

Investment in rail is often matched by ambitious regeneration projects. Abbey Wood is getting a radical makeover.

Much of housing estate of Thamesmead South has been either demolished or renovated.

There are plans for a new library, central square, improvements to roads and pavements, and expanded commercial spaces.

The new station captures the new mood: a zinc-clad Manta Ray shape upheld by vast timber arches.

Abbey Wood will be served by 12 trains an hour taking 25 minutes to Liverpool Street, and hopes to use this asset to attract affluent white collar workers.

Prices in Abbey Wood are up 61% in five years, though at an average of £289,000 are dramatically lower than Farringdon at £804,000 despite being only 21 minutes away.

As opening day draws closer, buy-to-let investors are searching for the best opportunities.

Crossrail seems like the ideal way to capitalise on billions of investment reviving long-neglected neighbourhoods.

Yet despite the obvious attractions, there are challenges for investors. Researching the numerous developments along the line is time consuming.

Managing rental properties is never easy. And there’s the question of timing.

Many investors would like to buy now whilst the market is ripe, but may have to wait until their capital is large enough to acquire a property.

A better way to invest

There is a simpler way to invest in Crossrail areas, and regeneration areas across the country.

Property Partner is an online platform designed to make investing in residential property easy and efficient.

Investors browse property listings, complete with photographs and market data.

Shares can be bought at a click, without dealing with mortgages or solicitors. Investors then earn proportional rental income each month, and capital gains if the property prices rise.

There are 29 properties to invest in along the Crossrail route.

These include a two-bed flat in Whitechapel, estimated to produce £22,800 in rental income a year.

In the East there’s a three-bed house in Romford within walking distance of the Crossrail station.

The route splits south of the river, where you’ll find properties such as a three-bed house in Thamesmead, well positioned to gain from the regeneration programme.

The platform is designed to address many of the issues with buy-to-let investing.

A traditional buy-to-let transaction will incur large upfront costs, such as legal fees, along with advertising costs, service charges, repairs, and exterior maintenance.

Management fees from high street agents can typically cost 18% to 20% of rental income.

Property Partner tackles this with economies of scale, so is able to charge a one-off 2% transaction fee on the initial investment, while management fees are just 10.5% of rental income – a figure already factored into the rental yields.

Build your residential portfolio with Property Partner

Access expertise, scale, and liquidity

All properties on the platform are hand-picked by an experienced team led by director of property Robert Weaver, the former Global Director of Residential Investment at RBS, and a member of the British Property Federation’s Residential Committee.

The team bring many decades of experience to the selection process. Increased liquidity is also on offer via Property Partner’s unique Resale market.

Shares can be sold to other investors, often within days. Over the longer term, all properties have a five year cycle, at which point investors have the option of exiting their investment at a fair market value – with zero fees.

Investors can be reassured by the financial stability of Property Partner, and the calibre of its management.

Each investment is held in a tax-efficient special purpose vehicle, ring fenced from the asset and liabilities of Property Partner and other investments.

The board of directors includes Ed Wray, Betfair co-founder, and Neil Rimer, co-founder of Index Ventures, backer of numerous successful fintech companies such as Transferwise and Funding Circle.

The platform is regulated by the Financial Conduct Authority and audited by KPMG. The government has poured billions into Crossrail.

Property Partner offers a unique way to take part in the regeneration of the most exciting parts of the capital.

CAPITAL AT RISK

The value of your investment can go down as well as up. Forecasts are not a reliable indicator of future performance. Gross rent and dividends may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. 

Financial promotion by London House Exchange Limited (8820870); authorised and regulated by the Financial Conduct Authority (No. 613499).  *Properties on our platform have, on average, after all fees and before personal taxation, delivered an estimated annualised total return of over 8%; including approximately 3% net rental income (dividends) and 5% in capital value growth. 

These estimated returns are calculated quarterly and (i) with reference to the average dividend yields and price movements of all previous listings, (ii) spreading over 5 years any purchase discount to the RICS valuation, and (iii) assuming the property remains tenanted. We are champions of transparency and you can download the objective data used to calculate this estimated return on the website. 

This is a paid promotion from Property Partner