Cahootz Property Investing

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Risk Warning

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

It's essential to bear in mind that investing in the property market comes with the risk of incurring losses, which could result in receiving a return on investment that is lower than the original investment amount.

2. You won’t get your money back quickly

The availability of buyers and sellers can affect the ease of selling your shares, and the sale price may be less than what you paid for them initially.
In the event of unfavourable circumstances, it may take a prolonged period of time to recover your investment in certain types of properties.
The payment of dividends is not assured and is dependent on the decision of the property-holding company's directors, who consider the property's financial condition. In the most extreme case, dividends may be halted.

3. Don’t put all your eggs in one basket

Putting all your money into a single platform or type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

4. The value of your investment can be reduced

The value of your investment in property can be influenced by various market factors and specific risks, which are detailed in our Key Risks section. As your investment is tied to the underlying property value in your portfolio, it is subject to potential fluctuations in value, both upward and downward.
In some circumstances, properties may require extra funds, which may be raised through the issuance of new shares. If more shares are issued, the proportion of ownership in the property that you originally invested in will decrease. This may result in a reduction in the value of your investment, depending on the extent of future fundraising needed.
These new shares may have additional privileges that your shares do not have, or may be available at a lower price than what you initially paid for your shares. This could further diminish your chances of earning a return on your investment.

5. You are unlikely to be protected if something goes wrong

Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker.
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection.

If you are interested in learning more about how to protect yourself, visit the FCA’s website. For further information about investment-based crowdfunding, visit the FCA’s website.

Capital appreciation

Long-term capital growth

As a physical asset with limited supply and growing population, property investing has historically seen consistent long-term growth with the average house price in London increasing by over 130% between 2005 and 2022 (compared to 47% for the FTSE 100)*. But whilst property generally sees less volatility than other asset classes (such as equity and fixed income), fluctuations do occur, so property should always be considered a long-term investment.

*https://landregistry.data.gov.uk/

London Property vs FTSE 100

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100

London Property

FTSE 100

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2022

Source: Land Registry and Marketwatch. London house price and FTSE 100 rebased to 100 from 01 Jan 1997 - 01 Jan 2022

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Income

Passive income

Due to consistent high demand for rental accommodation in the UK, particularly in city locations, property investing has the potential to provide regular long-term passive income from rent. Furthermore, rental prices are typically renewed every twelve months making this income stream a good hedge against inflation. In times of economic downturn, demand for rental properties tends to increase as people put off the choice of buying a home.

How it works

Diversification

Reduced portfolio risk

Buy-to-let property as an asset class, in some circumstances, can have a low correlation to other investments such as equities and fixed income. As such, buy-to-let property investing has a role to play in any well balanced, diversified investment portfolio.

Problem

The challenges of traditional property investment

Complexity

Investing in property can involve complicated legal and financial considerations as well as complex regulatory and tenancy management processes. Reliance on multiple third-parties without transparency can sometimes result in unexpected costs.

Time

Lengthy search, acquisition and sale processes can be very time consuming. Furthermore, even with a third-party property management agency in place, approving maintenance requests and negotiating contracts can require significant time commitments.

Accessibility

Buy-to-let property traditionally requires large deposits, mortgage debt, and purchase costs, which could put property out of reach for many investors. These costs may also reduce the extent to which investors are able to diversify across multiple properties and locations.

What is Cahootz?

The new way to invest in buy-to-let

Cahootz is a fractional property investment platform that offers fractions of high-quality rental properties for sale to investors. Each fraction represents a percentage ownership of a specific property, which entitles the owner to their share of rental income and capital appreciation. This allows you to invest in buy-to-let property for less and build a diversified portfolio.

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Cahootz investor platform Ui mocked up on iphone

How it works

Buy fractions, track your portfolio, and let us take care of the rest

Once onboarded, Cahootz provides access to detailed fractional property listings enabling you to browse and buy fractions. When a property is fully subscribed, Cahootz facilitates the purchase and takes care of all upfront and ongoing legal, financial and property management requirements on your behalf. Your online account will allow you to monitor activity related to your properties, access regular statements and track rental income payments as you grow your portfolio.

How it works