Crowdfunding site Property Moose has lowered its minimum individual investment to just £10.
The site, which offers investors a chance to contribute to a fundraising pool to buy a residential property, is hoping to reach out to new types of investors, including students kick-starting their saving or parents looking to start building a nest egg for their children.
A £10 investment obviously is not going to make you millions: placing a tenner in a £77,000 fund to buy a house would net you a projected £13, or a 33 per cent return, with a rental payment of £1 a year.
This includes the fees deducted by Property Moose: a five per cent upfront fundraising fee to cover some of the costs in raising the funds; 10 per cent, plus VAT, rental management fee for agents managing the property, and a 15 per cent share of the net capital growth.
The company said it was making it "possible for 'generation rent' to use their disposable income to get on the property ladder without the £80,000 deposit needed to buy an average house in the UK."
Founder of Property Moose Andrew Gardiner, said:
We wanted to give everyone the chance to invest in property, whether they have £10 or £100,000. When we started out, we had the lowest entry point in the market at £500, but now there is more choice, and we want to remain as the people’s choice, allowing everyone to get involved.
You could use that £10 that you find in your jeans pocket on a takeaway or a couple of coffees… or you could invest it in property, watch your property portfolio grow, and potentially earn a return from month one.
It would also allow an investor with only a small amount of capital, for example £50, to spread it among multiple investments.