CapitalRise: Investing in luxury property isn’t just for the 1%

Ever thought about investing in luxury property in London but don’t have a spare £10million handy? One company is looking to disrupt the property investment market, promising a staggering 10-18% return annually.

CapitalRise is a crowdfunding platform for investing in prime property and has already paid out £20,000 in interest payments to investors. Now this FinTech company is giving people the chance to invest with as little as £1,000.

“High net worth investors have been getting this kind of return for decades,” said Alex Michelin, co-founder of CapitalRise and co-founder of the luxury property developer Finchatton, adding that the entry point in the past was at least a million pounds. “Now with the internet we’re disrupting that old way of doing things.”

“We are bringing the opportunity to invest in high end real estate that was previously only available to financial institutions or high net worth individuals. The right property in the right place is still a valuable investment even in these uncertain times. In fact, we think that Brexit and Trump’s election will only make them even more attractive. The property market would have to fall by more than a third for CapitalRise customers to lose money on their investment. We are so confident in the projects that CapitalRise invest in that we all personally put money into each of the schemes.”

CapitalRise’s first venture was in Eaton Square Belgravia, once finished it was valued at a whopping £8.15million. The luxury three bedroom duplex home spanned 2,500 sq ft and included a private door, entrance hall and garden – a pretty impressive start for the crowdfunding FinTech firm.

CapitalRise is also helping other companies raise much needed financing to continue projects.

Finchatton raised £1m through the FinTech firm in just 71 hours for a project in Knightsbridge, now forecast to be worth £106m when it launches in 2018 the development comprises of five Georgian style townhouses with their own basement gym and 24 hour concierge.

“We’ve got a number of projects in the pipeline,” Michelin said. “Again, most of those are currently in London. We have one in The Strand, we have something in Piccadilly. Really fantastic institutional-grade investments that I think most of the everyday investors out there would love to have access to.”

Example of how CapitalRise would look to pay investors.
Example of exactly how CapitalRise is aiming to repay investors. Source: CapitalRise

Investors have been reporting concerns with buying luxury property in London. DMZ has also reported that house prices in the Capital have dropped over the month since Brexit.

However, Michelin sees an opportunity, “Prices have already fallen and actually now is a good time to enter the market. It’s a bit like the stock market; you don’t want to buy in at the top, you want to buy in at the bottom, or at least close to it.”

DMZ would approach a property company stating they could give returns of up to 18% cautiously, especially when they are an unproven entity. However, CapitalRise’s first few projects have gone exceptionally well and with experienced Prime London developer Michelin at the helm they have the potential to seriously disrupt the established funding model.

With the current stagnant Prime London Market, DealMakerz wishes them the best of luck!

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