I watch this market with great interest. Property is bankers bread and butter. Over the decades banks crowded the everyday person out of property through inflating prices out of reach. By allowing banks to create money out of thin air and issue mortgages that they then repackage and sell the risk onto fund managers through mortgage backed securities, property prices have been artificially pumped out of control. These large loans are still being pumped onto people that cannot afford property through government scheme like ‘help to buy’.
When the house of cards tumbled to readjust the price back down, the everyday person suffered as they could no longer jump on the ladder and the government reacted by trying to keep the price up and bailing out the banks. The price needed correcting, but the banking / government partnership chose to keep property prices inflated and instead encourage more borrowers to take out loans they cannot afford to repay.
Creating a genuine market of lenders and borrowers using technology to crowd everyday people back into property by allowing them to invest ‘real’ savings in small quantities is a game changer. It creates a sound property market, allows people to invest small and every loan prevents a bank from creating that loan out of nothing.
Great to see Crowd Property live up to their philosophy too by raising finance for the company Crowd Property from the crowd through BankToTheFuture.com, the Equity CrowdFunding platform. Disruptive finance raising disruptive finance through disruptive investors using disruptive technology. One up for the people, one down for the banks. Which product is next – insurance?, FX?, Pensions?
Oh yeah, they are all being built already.
I should disclose I invested in Crowd Property through BankToTheFuture.com, so I watch with real interest as this market grows.Simon Dixon