Property development franchises in the UK offer a reliable and stable investment avenue compared to riskier options like stocks. The rise of property development franchises now allows amateur investors to participate with investments as low as £5,000. These franchises provide the opportunity to invest in established brands and projects, leveraging their expertise and business models for shared success. It’s a way to enter the property market without going solo.
Average minimum investment cost
In the UK, there are approximately 35 well-established property development franchises, each with an average minimum investment requirement of £18,414. However, selecting the right franchise should not solely be based on cost. Their expertise and guidance vary, often focusing on specific areas within the property industry.
Choosing based on area of expertise
While certain property development franchises, like Sperry Van Ness (SVN), exclusively target commercial opportunities, their high entry fee of £163,000 makes them more suitable for professional investors.
Other franchises, such as Winkworth, Hunters, and Estate Agency Franchise Group, cater specifically to estate agencies. With minimum investments ranging from £5,000 to £50,000, these franchises offer a relatively accessible option for amateur investors, as long as they are comfortable with the limitations of an estate agency-focused platform.
Some franchises specialize in the lettings sector, particularly in niche areas like HMOs and student housing. Examples include Platinum Property Partners, Homeshare UK, and Martin & Co, with minimum investments ranging from £5,000 to £50,000.
Some property development franchises, like Belvoir, take a broader approach by focusing on estate agency, lettings, and niche sectors simultaneously. However, these franchises often offer limited variety to investors. Sourced aims to address this issue.
With a minimum investment of £12,500, sourced provides excellent accessibility for amateur investors seeking the expertise and experience of an established development brand. What sets Sourced apart is not just accessibility but also the ability for investors to diversify their investments across various sectors. This includes lesser-known areas like rent-to-rent, serviced accommodation, lease option, title splits, property sourcing, refurbishment, conversions, and new builds.
This flexibility allows investors to tailor their investment strategy and diversify their portfolio, maximizing returns in different sectors and avenues.
Chris Kirkwood, Director of Sourced, emphasizes the importance of accessibility. While some development franchises cater exclusively to professional investors with large sums of money, Sourced believes in providing opportunities for all.
Accessibility goes beyond the minimum investment required; it encompasses the range of opportunities and the necessary support and advice for making informed decisions.
Narrowing investment to a single sector of the property industry, like residential or rentals, can limit your investment strategy. We aimed to address this issue by providing a platform that allows for a diversified approach, enabling investors to maximize returns even during uncertain times.
When selecting a franchise, consider that the initial investment cost is not the sole indicator of a platform’s ability to help you achieve your goals. Choosing the package that aligns with your specific requirements is the best approach for long-term success.
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