Frequently Asked Questions

Property Stake is a UK based property investment platform that allows users to earn passive income from tokenized property investments. Users can purchase ownership tokens in fully tenanted and fully managed UK properties. With investments available from just £500, investors benefit from rental returns and capital appreciation in the property assets they own.

Property tokenization is a process where property assets are divided into digital tokens, each representing a fraction of ownership in the underlying property. These tokens are typically created using blockchain technology, which ensures transparency, security, and immutability of ownership records.

Here’s how property tokenization works on Property Stake:

Asset Identification: A property or group of properties is identified for tokenisation. This could be open market residential, affordable housing or supported living assets.

Legal Compliance: Legal and regulatory requirements are addressed to ensure compliance with local laws regarding property ownership and investment.

Token Creation: The property is divided into digital tokens, each representing a specific fraction of ownership. For example, if a property is worth £1 million and 10,000 tokens are created, each token would represent ownership of 0.01% of the property.

Blockchain Integration: The tokens are issued and recorded on a blockchain platform, we use a specialised real estate tokenization platform. The use of blockchain simply ensures the highest possible levels of transparency, security, and efficient transfer of ownership for our investors.

Investment Offering: The tokens are then offered to investors, investors can purchase these tokens from as little as £500, becoming fractional owners of the underlying property.

Ongoing Management: The property is managed according to the terms outlined in the token offering. Property Stake undertake 100% of the property maintenance and other management tasks.

Blockchain technology offers several benefits in the context of fractional property investment:

Transparency: Blockchain provides a transparent and immutable ledger of ownership records. Each transaction involving fractional property ownership is recorded on the blockchain, allowing investors to verify ownership and track the history of transactions in a transparent manner.

Security: Blockchain technology ensures high levels of security through cryptographic techniques. Transactions on the blockchain are encrypted and distributed across a decentralised network of computers, making it extremely difficult for malicious actors to alter or tamper with ownership records.

Efficiency: Blockchain streamlines the process of fractional property investment by automating tasks such as ownership transfer, dividend distribution, and investor verification. Smart contracts, which are self-executing contracts with the terms of the agreement directly written into code, can automate these processes, reducing the need for intermediaries and paperwork.

Liquidity: Blockchain-based platforms can facilitate secondary markets for trading fractional property tokens. Investors can buy and sell tokens peer-to-peer on digital asset exchanges, providing liquidity and flexibility compared to traditional real estate investments, which are often illiquid.

Accessibility: Blockchain technology lowers barriers to entry for tokenised property investment by enabling fractional ownership of high-value properties. Investors can purchase tokens representing fractional ownership stakes in properties, allowing them to diversify their investment portfolios with smaller amounts of capital.

Global Reach: By creating a blockchain-based tokenised property investment platforms we have the potential to attract investors from around the world. By leveraging blockchain technology, investors can participate in property markets across geographical boundaries, opening up new investment opportunities and diversification options.

The senior management team at Property Stake have invested and managed thousands of properties throughout the UK over many years. We have a strong track record of developing and exiting property portfolios, this experience in selecting and developing property assets now benefits all Property Stake investors.

Though each property asset is unique and is assessed on it’s own merits by our team, the key characteristics we asses are as follows:

Location: We look for properties in desirable locations with strong economic fundamentals, high demand for rental properties, and potential for property value appreciation are favoured. Factors such as proximity to amenities, transportation hubs, employment centres, and schools are also considered.

Market Analysis: We conduct thorough market research and analysis to identify real estate markets with favourable supply-demand dynamics, rental yields, low vacancy rates and high growth potential. We focus on markets that are experiencing population growth, job creation, and infrastructure development.

Property Type: Whilst we invest in various types of properties, our experience and expertise lie in three core property investment types – open market, affordable housing and supported living assets. We know the risk-return profiles for these asset types extremely well and have significant experience in both developing, managing and increasing value in these types of properties.

Financial Analysis: Before purchasing any asset for the platform we assess the financial performance of potential properties by analysing metrics such as rental income, occupancy rates, operating expenses, property taxes, maintenance costs, and projected cash flows. We conduct sensitivity analysis and stress tests to evaluate the resilience of properties to market fluctuations and economic downturns. Ensuring only secured, reliable assets with predictable returns hit our platform.

Risk Management: We evaluate the risks associated with each property, including market risk, credit risk, liquidity risk, and operational risk. We diversify our own portfolio across different property types, locations and asset classes to mitigate concentration risk and enhance portfolio resilience.

Legal and Regulatory Compliance: We ensure that properties comply with local laws, zoning regulations, building codes, and environmental standards. We conduct due diligence on property titles, ownership structures, lease agreements, and legal documentation to mitigate any legal risks and protect investor interests.

Exit Strategy: We also consider potential exit strategies for properties, such as long-term rental income, property appreciation and the eventual sale of the property. We assess the liquidity and marketability of properties to facilitate investor exits and maximise returns.

The minimum investment amount into an individual asset is £500. The maximum amount possible to invest into a single asset will be based on the number of shares available at that time. One sole investor cannot own more than 25% of an individual property asset. For example if an asset is valued at £500,000 the maximum possible investment into that asset would be £125,000, however it’s possible to make investments across multiple assets totalling a higher amount whilst also providing greater diversification to your portfolio.

If you are looking to invest more than £100,000 we can create a bespoke property portfolio of properties tailored to your investment goals and aspirations – to do this please schedule a call with our HNW team.

We also have opportunities available for institutional investors, please get in touch for more information.

You can sell your tokens at any time to fellow investors on our secondary exchange. This flexibility helps to provide investors with the ability to manage their property portfolio with speed and ease to meet their unique investment goals.

You can buy tokens in a property through the Property Stake platform by following these steps:

Registration: Register an account on Property Stake platform. This involves completing a short identity check – providing personal information, verifying identity, and agreeing to the platform’s terms and conditions.

Browse Properties: Browse our platform’s marketplace to view currently available properties for tokenized ownership. Each property listing provides information such as location, property type, investment details, and the percentage of ownership available for purchase.

Due Diligence: You may wish to do due diligence on properties of interest. This may include reviewing property packs that contain additional information, financial projections, market analysis, and other relevant documents.

Select Properties: Based on your own investment criteria and goals, you select one or more properties to invest in. You may consider factors such as location, property type, expected returns, risk profile, and investment horizon when making your decision.

Purchasing Tokens: You can select the desired percentage of ownership in the chosen property/properties and proceed to purchase tokens via an approved payment method. You specify the amount you wish to invest and complete the transaction through our secure payment system. We accept credit / debit card payments and bank transfers.

Confirmation and Documentation: Upon completion of the transaction, you receive confirmation of their ownership of tokens in the property. We provide documentation, including a digital certificate and token(s) representing ownership, as evidence of the investment. These are automatically updated to your digital wallet.

Property is a tangible and stable asset class that has been a leading performer of returns throughout history. It has been a favourite among large institutional and High Net Worth investors for many reasons including:

• Growth in value over long periods of time and less volatility than public financial markets, offering stability in turbulent times.
• Acts as a hedge against inflation and currency depreciation and a good long-term store of value.
• Productive asset that generates predictable income from rent, as well as capital appreciation on the property.
• Enhances the quality of the risk-return profile of the portfolio when included in a diversified portfolio of different asset classes.

Through Property Stake we’re allowing anyone to take advantage of this asset class, with fast and easy access to UK property investments from as little as £500.

Holding shares does not entitle the owner to live in the property or use the property for personal use. You are investing in a fully tenanted UK property, not a timeshare or rental property that you have access to. It is against our terms to interact with the property and/or its residents.

Our fees are fully transparent. We charge the following fees for property acquisition, asset management and sale:

• 1% for acquisition of each property based on the purchase price.
• 1% for the asset management if each property based on the open market value
• 1% for the sale of each property based on the sale price achieved

Platform Transaction Fees

• We charge 1% for each transaction on the platform
• If you invest £500 the transaction fee is £5
• If you sell your £500 investment the transaction fee is £5.

Our in-house asset management experts partner with local experts to manage each individual property. From an investor standpoint, there is no responsibility to look after the properties they have invested in- it is fully managed by the Property Stake team.

Investors will continue to own shares in the SPV which owns the property. This is completely ringfenced off from the operations of Property Stake Limited.