Several mainstream platforms have recently emerged offering investors small sums of capital opportunities to pool together their investments to gain a property one cannot afford alone. However, such platforms are not workable with sharia law owing to the debt they introduce into their offering. Today there’re several sharia-compliant property products including Yielders that fill this gap.
Yielders’ Islamic Finetech property platform offers investments from as little as £100 This allows a good chunk of the Muslim population to get involved in real estate investment opportunities without the burden of a mortgage or the hassle of being a landlord. In 2017, Yielders was the first Islamic Fintech platform to receive the Financial Conduct Authority (FCA) authorisation. This gave investors more assurance resulting in impressive quarterly growth in investment value with a 260% increase in Q2 and 137% in Q3.
Yielders Investment Opportunities
Yielders’ crowdfunding investment platform puts UK property investment within everyone’s reach. The platform retails pre-funded investments so that the assets can generate pre-defined rental incomes. This means investors can start earning returns within 30 days. Each property investment has a lifespan of 2 to 5 years. The Yielders UK team manages the entire investment process to maximise gains.
The investor benefits in three ways:
i). Zero leverage – Yielders team of legal experts consolidate the assets in an SPV structure.
ii). Prefunded assets – Before offering the property to the public, Yielders property sourcing team first acquires the assets.
iii). Fully integrated – Yielders have streamlined the process of investing in property straight from the comfort of your mobile devices.
How to Fund Your Yielders Account
Once you become an investor, you’ll receive an e-wallet which you can top up via a debit card or bank transfer. Transaction fees include:
- Initial fee – 2.5 initial fee covers the cost of setting up the asset structures and administration costs of onboarding investors.
- Management fees – 10% management fee of the gross rental income. This covers the ongoing costs of managing the investment company and its assets.
- Profit share – 15% profit shared is tied to investor returns. Yielders will receive 15% of the capital appreciation when an asset sells at a profit at the end of the agreed investment period.
Risks to Investors
Investors’ main risks come with conventional crowdfunding which could hold up the investment process. Subsequent risks include the need to put tenants into place, adhere to set terms agreed, and the lack of an exit strategy.
Yielders’ business model mitigates such risks by pre-funding assets. This gives an added layer of security and pre-defined rental agreements. This allows Yielders to minimise voids while maximising returns. All in all, investors are already aware of expected returns before they invest. Furthermore, Yielders has a secondary market which allows assets to be re-listed giving investors complete control of their funds.
Yielders offers a great platform for the Muslim population who lack enough cash or time to buy and own property. Though not as liquid as other investment options, this investment is ideal for people looking to invest for the next 3 to 5 years. In general, Yielders is a robust property investment platform that is beneficial to the UK Islamic market.