What is HiP and how does it work?
A short introduction to the concepts around HiP – a game changing way to think about property finance
*Our FCA Licence is under review whilst we work towards being live and public at the end of 2018.
HiP is a next-generation property finance platform, enabling a new level of financial freedom for buyers, owners and investors.
HiP delivers solutions that allow property owners and investors to leverage the liquidity currently locked-up in real estate.
HiP rethinks the way that real-estate assets are bought, sold, collateralised and interacted with.
HiP makes property wealth more accessible by turning real-estate equity, and debt, into tradable assets. For this, HiP has a unique FCA licence to operate within the UK*.
HiP For Owners
We have coined the phrase ‘property banking’, meaning that if you own a building you can create a property bank account with HiP. This allows you to access the equity, as well as the debt in your building, enabling a new level of financial freedom; as users are able to fractionally sell their equity, or fractionally increase their debt.
For owners this means you simply log on, use the interactive tools and instruct the platform to “fractionally sell 10% of your building (releasing equity)”, or, fractionally increase your debt”. Your request is then made live on our trading exchange and becomes a commodity – allowing investors to buy those fractions and participate in the economic benefits of your assets debt and equity.
HiP For Investors
Investors are given the opportunity to participate in portfolio or “product” acquisitions as opposed to investing in single properties; giving them the ability to invest regionally or on a preferential bases; offering flexibility to the investor and spreading risk: this is known as uncorrelated investment.
For investors, we will display the buy side and what your investment will realise for you. This will be a mix of debt and equity units across multiple properties. You buy into a portfolio position and have a net return each month – and then, after a period of time, you can exit the system and cash out on the capital appreciation of your equity stake. These shares will then be redistributed to new or existing investors on the platform, or bought back by the property owner.
The global real estate market is worth 228 trillion dollars, the UK market alone being valued at around 6 trillion dollars and will be HiP’S initial rollout territory. HiP is creating a new asset class and secondary market by fractionaly trading debt and equity in real-time – a world first.
Our initial focus will be residential. Over time we will target the commercial, buy-to-let, refinancing, bridging loans and mezzanine financing sectors; and will work our way across these sectors to provide a multitude of services.
Welcome to HiP
With HiP first-time buyers will be able to purchase the percentage of the home they can afford…as opposed to the whole asset.
Existing homeowners can now release equity as cash without moving.
Buy to let landlords can offset their portfolio and the returns that the portfolio gives to other people; enabling them to release cash but maintain ownership.
So, as you apply the core principles of our technology to different verticals, you get different results – you solve different problems. It’s a huge industry, potentially we can create significant change in the trading of debt and equity globally. We’re owner driven, and will provide a new level of financial freedom to the way property owners operate.
WHAT WE AIM TO DO
HiP is the NEW Way
to finance property
Creating affordable financing packages
HiP will change the way property wealth can be accessed and afforded, opening the world of real estate to many more buyers, owners and investors.
Releasing value from their assets
HiP offers a first for home owners, developers, investors and buyers enabling them to take control of their property and the wealth within it.
Offering investment flexibility in high-yield property markets
The property market excludes a large part of the community from being able to buy and invest. HiP unlocks this investment market for all.
Initially, HiP Will revolutionise the world of property for four major markets within this sector:
FIRST TIME BUYERS
“A record number of first time buyers must find at least £500,000 to get a foothold on the housing ladder in London.” - London Evening Standard, 15th December 2017
Although HiP is not just about London, this headline tells a sad story. Combined with an average £80,000 debt for University graduates in the UK and we have a major social problem. HiP will help solve this by allowing investors to participate in first time buyers' home ownership, bringing the barriers to entry far lower than ever conceived possible before.
To release equity in a property today can only be achieved by either selling it entirely or taking out further debt. Having to pay interest to access wealth that already belongs to you is a deeply flawed model.
HiP will allow people to release equity into their own property bank account on the HiP platform; in multiple currencies and without incurring further debt or moving out of their home.
BUY TO LET LANDLORDS
HiP will allow buy-to-let investors to leverage their entire portfolio to expand their portfolios faster, cheaper and more efficiently.
The HiP platform allows investors to choose from multiple opportunities with incredible flexibility.