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Opromark is
a newly launched company that allows people to buy shares in buy-to-let
properties for as little as £1.
It is a concept
that should appeal either to people who do not have suitable capital
to purchase a single property themselves or those who would prefer
to spread their investment around several different properties.
To allow investors
to buy and sell shares in different properties, Opromark is setting
up an exchange that operates in a similar fashion to stock exchanges
for listed companies.
Sellers will
add their property to the Opromark website, offering shares at a
price, fixed initially at £1 each, in a new company specific
to that property. They will also be able to set the minimum percentage
of the property that buyers will be required to invest in.
Buyers are then
able to study the property details and decide whether to bid. A
professional manager is provided for each property, but ultimately
it is up to the shareholders to decide how the property is run and
who manages it.
Effectively
people will be buying a shareholding in a small property company.
However, unlike full ownership of buy-to-let properties, shareholders
will not need to worry about finding tenants, managing and maintaining
the property. The ability to diversify amongst several different
properties will also be appealing to many.
Although the
exchange brings affordable property investment to a wider audience,
it is not necessarily suitable for beginners or novices. Investors
need to know the property market and be able to recognise good investments,
as certain properties will perform better than others.
When new properties
are added to the exchange, investors will have two to three weeks
to decide whether to buy shares in it. Opromark provide survey details
for each property, but investors are advised to do their own research
before committing their money.
So should you
invest through Opromark? The exchange has received a mixed reception
from financial advisers and there are a number of risk factors to
consider, such as falling house prices and a generally untested
concept.
However, investors
may want to consider the exchange as part of a broader investment
strategy and it could be a useful way to diversify into property
without the full risk or cost of direct property ownership.
More information
on property investment.
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