New homebuying and investment platform Allbricks launches

Source: Allbricks

As the buy-to-let market continues to experience an exodus of landlords due to rising mortgage rates and increased red tape, Allbricks, a new homebuying and investment platform, is offering an alternative and mortgage-free route for property investors which boasts 32% higher returns than traditional buy-to-lets.

Through the Allbricks model, prospective homeowners buy a certain number of bricks (a portion of their home), with the rest being bought buy property investors. This allows people to get on the housing ladder for as little as £10,000 or 1% of the property price - whichever is higher - with the homeowner then paying rent to investors on the part of the house they don’t own. This also provides a unique proposition for property investors - be they individuals or large institutions - as they are able to invest from as little as £2,000 - £100,000+, enabling them to spread risk and diversify their portfolios whilst also doing social good.

This comes as the buy-to-let market is experiencing an exodus of landlords as mortgages have soared to their highest rate in at least 12 years. The average rate on a two-year fixed-rate buy-to-let mortgage hit 6.96% last week, according to Moneyfacts, as the Bank of England has warned that tax hikes, soaring interest rates and red tape will force more landlords to sell their properties. Not only does Allbricks’ approach remove issues surrounding mortgages, but it is removing another huge cost associated with homeownership and property investment - maintenance and repairs. Allbricks pays for all costs associated with repairing key structural issues or built-in appliances. This approach not only safeguards the homeowners' investment but also protects the interests of investors.

As well as serving institutional investors and high-net-worth individuals, by allowing investments of as little as £2,000, Allbricks is also breaking down barriers in terms of property investment and allowing more of the critical mass of society to benefit from the lucrative property market. New data released by the firm has revealed that a staggering 44% of Brits have £2,000 or more in investable wealth but felt they needed more capital to participate in property investment, with a further 35% saying they’ve been saving for years to invest in this sector, but the current market has made it unattainable for them. This highlights both the clear appetite and need for new services such as this.

Allbricks believes that affordable and accessible housing should be a right, not a privilege. By offering an alternative to mortgages, the company is actively working to combat the displacement of individuals and families from their communities. As well as breaking down barriers for homeowners amidst the current housing crisis, Allbricks also provides a unique opportunity for investors to do social good on their doorstep, investing in their local community and helping more people to get on the housing ladder. Further data from the company has revealed that 34% of investors now say they would prefer to invest into their local community, providing they could get similar return compared to their usual investments. With Allbricks’ model standing at 32% more profitable than buy-to-lets, this could lead to a new wave of investment and regeneration in communities in need across the UK.

Shahram Shaida, CEO and founder of Allbricks, comments on the issues that Allbricks aims to address:

"I founded Allbricks to put the fading dream of home ownership back within reach. After personally experiencing how broken the current rental, mortgage and home buying process is, I decided to make it my life mission to solve the global housing crises and reverse the fading dream of home ownership. The UK has ended up with Generation Stuck.

"People are stuck at home unable to move out, stuck renting while they save for a deposit, stuck in properties that don’t fit their needs, and even stuck with mortgages that don’t work. We have the opportunity and the solution to change this trend. Most of us have two options: rent or get a mortgage. The problem is that for a vast majority of the population, mortgages require unaffordable deposits and interest rates. The traditional mortgage represents an antiquated, outdated model that isn’t really fit for purpose for many UK home buyers anymore. With rising interest rates, the cost of living, and even the increasing number of people who are choosing to be self-employed, we need and deserve a better solution.

"Allbricks, has uniquely unitised residential property to democratise wealth creation through home ownership. By removing the mortgage model and creating a crowdfunding type of approach, we've made something better than a mortgage for home buyers, better than a buy-to-let for investors and creating new unique investment opportunities for institutional investors."

Comments: (0)