The Financial Markets Authority says property crowdfunding has been gaining interest as new business models offer Kiwis a new way to enter the housing market
Through newly launched property crowdfunding models, Kiwis are able to enter the housing market in a different way by buying shares in a house share company, BusinessDesk reports.
As many, particularly younger Kiwis, struggle to pull together a housing deposit, The Ownery Ltd is offering a chance to grow their savings through the housing market.
It clips the ticket on the investments by charging those buying shares an up-front entry fee of 4 to 5 percent of the amount they put in (set at a minimum $500), and the co-founders' associate company, Houseshare Management Ltd, which will manage the properties, will charge an annual management fee of up to 1.5 percent of the property value, BusinessDesk says.
The business model doesn’t require The Ownery to have a crowd-funding licence but it does require a product disclosure statement to be approved by the FMA.
The regulator wouldn’t disclose specific details on any of the various models being proposed at this stage.
The FMA hasn’t yet received a PDS from The Ownery which is yet to purchase its first house under the house sharing concept.
“These offers will be regulated offers under the Financial Markets Conduct Act which means that there are various obligations relating to the form of the offer information and conduct of the offeror”, it said in an emailed statement.
As many, particularly younger Kiwis, struggle to pull together a housing deposit, The Ownery Ltd is offering a chance to grow their savings through the housing market.
It clips the ticket on the investments by charging those buying shares an up-front entry fee of 4 to 5 percent of the amount they put in (set at a minimum $500), and the co-founders' associate company, Houseshare Management Ltd, which will manage the properties, will charge an annual management fee of up to 1.5 percent of the property value, BusinessDesk says.
The business model doesn’t require The Ownery to have a crowd-funding licence but it does require a product disclosure statement to be approved by the FMA.
The regulator wouldn’t disclose specific details on any of the various models being proposed at this stage.
The FMA hasn’t yet received a PDS from The Ownery which is yet to purchase its first house under the house sharing concept.
“These offers will be regulated offers under the Financial Markets Conduct Act which means that there are various obligations relating to the form of the offer information and conduct of the offeror”, it said in an emailed statement.
