Fancy becoming a buy-to-let investor in rental hotspots of Manchester and Liverpool?
A new online platform is aiming to make it easy for anyone, anywhere in the world to become professional landlords overnight.
In just a few clicks, potential investors can buy a ‘move in’ ready property within minutes.
Under Dot Residential’s model, the business offers a complete wrap around service for would-be landlords.
Dot bulk-buys properties at a discount from developers and furnishes the apartments to ‘boutique hotel’ standards.
Dot requires investors to provide a 30 per cent deposit and finances the remainder itself with what it calls a Dot Instant Mortgage.
The property is then held in a special purpose vehicle (SPV) approved by accountancy firm EY and investors receive rent while the company organises the purchase, lettings, and property management process.
“We are taking the hassle out of what can be a time consuming process,” said Gray Stern, co-founder and chief executive.
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Stern has experience in working on the lending side as the founder of London-based buy to let mortgage lender Landbay.
He said: “Over the years we have witnessed how diluted the buy to let market has become for people to invest in good quality properties.
“Not only does it take time, but there are the legals, financials, and tax changes to contend with, and if you’re a new investor it can be very onerous.”
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He continued: “The buy to let market is becoming more professional and this means there is an opportunity to provide investors with a suite of tools that they will need to invest like a professional investor.
“Our platform allows people to do that all online.
“We want to provide the best ecommerce experience when buying a property and this is what makes it attractive to many people.”
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Dot Residential started life in London but moved to Manchester last year because it could not find suitable apartments in the capital that could be let profitably. It has started with 20 properties in Manchester and Liverpool, bought with $3m raised from investors, mainly in the US.
Speaking about the move to Manchester, Stern said: “This model does not work in London. The market is saturated, rental yields in London are very low at the moment and the market for capital growth is stagnated meaning there’s less appetite for it from investors.
“Manchester and Liverpool, however, has a different proposition.
“There’s still an appetite from investors. The city has a growing professional community who want to rent good quality homes.
“Generation rent has been priced out of the housing market and now they want more value for their money.”
The company, based at Canada House, will be looking to expand its services to other 海角视频 cities including Leeds, Birmingham, and Bristol.
But it’s also looking at opportunities in the US targeting “secondary cities” such as Austin and Denver, where millennials priced out of big cities are increasingly moving.
“Our ultimate goal is to build a network of cities around the world so landlords can invest anywhere and we’re really excited that what has started in Manchester has the potential to become a global business.”
He added: “The key for us is to get investors confident in our platform and our process.
“The challenge is educating people on what we are about, being transparent, and giving people the tools to make that initial step into becoming a professional landlord.”