Plotify is bringing rental property investing into the digital age. Through the use of a ‘Plot’, a Special Purpose Vehicle incorporating a property asset, debt finance and a range of services, we enable you to invest indirectly in individual properties and realize the potential investment returns without the hassle of direct property ownership.
A legal entity created for the purposes of a specific investment. The SPV is a distinct company and holds the legal title to a single property. Each SPV will be incorporated and registered with the applicable company registry in the jurisdiction of the property asset.
Our unique Plot structure brings together a range of services needed to operate a residential property investment. Each Plot comprises a single residential property, owned by a single SPV, with a single investor. The SPV is managed by Plotify Asset Management Limited for a fee, who arrange services including debt finance, property management and accounting. This unique structure enables us to provide Plots complete with the necessary elements to streamline and simplify property investment.
When you invest in a Plot, you are buying the ‘beneficial interest’ in the SPV which entitles you to the potential returns that may be generated by the company, becoming the ‘beneficial owner’ of the SPV (and by extension, of the property). Acquiring the beneficial interest is the standard approach for most retail share trading in the United Kingdom.
No. Each Plot is owned by one Investor.
We choose properties based on our forecast of yields, long term rental potential and stability of demand, in areas with strong growth, a skilled and growing workforce and proximity to hubs of innovation. We do the research, drive the miles and inspect every site. Note however that you should perform your own assessment as to whether a given investment is suitable for you.
Currently Plotify is acquiring Plots in the UK and USA. We’re planning to expand to India, Singapore, Hong Kong and Canada in the coming months. Prospective Plotify clients, regardless of home location will be required to successfully complete Know Your Customer, Anti-Money Laundering and Anti-Terrorist Financing checks.
CARV stands for Capital expenditures, Arrears, Repairs, and Vacancies. SPVs are charged an averaged cost for these items, meaning that income, costs and therefore profit for an SPV are stable and predictable, as is the distribution of those profits to the shareholder. Periodically Plotify may be required to increase (or decrease) the averaged charges to reflect higher (or lower) than estimated costs which may impact the returns to the investor.
When we create Plots, the SPV enters in an interest-only loan, secured on the property asset. The loan is non-recourse, which means that whilst the lender has a claim on the assets of the SPV, they have no claim on the beneficial owner of the SPV (that is, a Plotify client). Investing in a Plot does not impact the terms or the parties to the loan, so you as a client are not required to satisfy credit checks, and the debt obligation is not in your name. Note that the terms of loans may change over time which could affect the financial performance of the SPV. Details for a specific SPV are set out in its contract documentation which you’ll need to review when you choose to invest.
Plotify settle the Stamp Duty Land Tax (SDLT) due when a UK property is first acquired, amortizing the cost to the SPV over a 10-year period. As a normal part of its operating costs, the SPV will incur all relevant taxes relating to the property it owns and the business it conducts (for instance, VAT on property management).
You remain accountable for your personal taxation obligations relating to investments you make with Plotify. Plotify does not provide tax advice. Please speak to a specialist tax adviser if required.
We’ve partnered with recognised property management firms in the industry to provide services to all of our Plots. You benefit from their scale, market knowledge and track record in professional residential property management, and from the pricing advantage available to Plotify as a corporate client.
Plotify will charge a transparent, competitive, fixed percentage fee of the Plot value per trade.
The applicable rates will be communicated at market launch.