Frequenty Asked Questions

GENERAL QUESTIONS

What is PropertyShares?

PropertyShares is an online investment platform for wholesale investors seeking to invest in Australian real estate loans through the PropertyShares managed investment scheme.

What is marketplace lending (peer-to-peer investing)?

Marketplace lending or peer-to-peer (P2P) Investing as it is commonly referred to are one in the same thing. It is the practice of using small amounts of money from multiple individuals to finance an investment.

What is the difference between marketplace landing (peer-to-peer investing) and crowdfunding?

The primary difference between marketplace lending (peer-to-peer) and crowdfunding is marketplace lending (peer-to-peer) is typically debt funding as opposed to crowdfunding which is usually equity.

Marketplace lending (peer-to-peer) regulations

To operate as a marketplace lending (peer-to-peer) or crowdfunding platform in Australia you need an Australian Financial Services License (AFSL).

PropertyShares Pty Ltd is a corporate authorised representative of MSC Advisory Pty Ltd (ACN 607 459 441) (AFSL 480649). MSC Advisory Pty Ltd is a related entity to Melbourne Securities Corporation Limited (ACN 160 326 545) (AFSL 428289) who is the Trustee of the PropertyShares Investment Trust.

How is PropertyShares different than a Real Estate Investment Trust (REIT)?

A REIT is a pool of many investments that returns a blended return to investors. PropertyShares is different in that you select individual deals to invest in. There is no blending of returns as each investment is separate so that investors are in total control of their own portfolio.

What types of investments does PropertyShares Offer?

PropertyShares offers secured and unsecured real estate loan investment opportunities in Residential, Commercial, Industrial, Land, Retail and Mixed-Use properties.

Who can invest with PropertyShares?

PropertyShares is currently open to high net worth individual investors and institutional investors including family trusts, SMSFs, companies, wholesale and sophisticated Investors, registered investment advisors, private equity firms, hedge funds, banks and asset managers.

The Platform is not currently open to retail investors. We are working on opening PropertyShares to Retail Investors in the near future.

What is a Wholesale/Sophisticated Investor?

A Wholesale/Sophisticated Investor includes any person or entity with a Certificate from a Qualified Accountant certifying that they have:
  • Net assets of at least $2.5 million; or
  • gross income for each of the last 2 financial years of at least $250,000 a year.
This certificate must be obtained from a qualified accountant who is a member of the Institute of Chartered Accountants, Australian Society of CPAs or the National Institute of Accountants.

If you believe that you meet the above requirements but do not currently have a certificate, we can connect you with one of our accounting partners who can assist you in obtaining certification. Please contact us directly at invest@propertyshares.com.au.

What is a retail investor?

A Retail Investor is any person / company that does not meet the definition of a 'Wholesale', 'Sophisticated' or 'Professional' Investor.

Can I invest through my SMSF or a Company?

Yes.

How do I start investing on PropertyShares?

The first step is to register an account. This involves an online identity check to comply with Anti-Money Laundering Laws. Once your account is set up and you sign the Investor Agreement documents you are ready to make your first investment.

What do I need to complete the registration?

In order for us to verify your identity, you will be required to provide some basic personal information such as your full name, date of birth and home address. If you are investing through a trust, company or SMSF you will need details of that entity.

What is the Information Memorandum and why do I need to read it?

An Information Memorandum (IM) is a document, that contains information about a financial product and which discloses its benefits, risks, cost of investment and the fees and charges that the financial product issuer may receive.

Why should I use PropertyShares to invest in real estate loans?

PropertyShares allows you to passively invest in professionally managed real estate loan investments for as little as $10,000. As an Investor, you will have exclusive deals sourced in a variety of asset types and geographies, giving you the ability to partake in opportunities historically only available to large institutions and wealthy individuals.

How do investors benefit?

Investors benefit from:
  • Cash flows;
  • Unprecedented access to real estate debt investments;
  • Select only the deals you like
  • Set your own level of exposure
  • lower investment minimums
  • and the opportunity for increased diversification.

Can I invest if I am a foreign investor?

Yes. PropertyShares can accept investors from most countries. Bilateral agreements between Australia and respective countries is required. If your resident country does allow direct investment into Australia without government approval or exemption then contact us directly at invest@propertyshares.com.au for assistance.

INVESTING QUESTIONS

How do I ask a question regarding a specific investment?

Contact us directly on (03) 9558 3170 or email us at invest@propertyshares.com.au

How does the investment process work?

All investment opportunities are screened prior to listing them on the Platform. This screening process includes background and credit checks a review of financials, projected returns, title and inspection reports, and comparable sales. The assessment process covers Project, Market, Management, Financials, Legals and Risk Assessments. Once the Investment team is satisfied the Project is listed on the Platform.

When the project is listed, you have access to detailed investment information including developer experience, financials, property information, legal and financial documents. Each Project has a target funding amount and investors who opt in for a specific Project will have their desired committed funds held in escrow until the funding amount has been met. Once funds are committed they cannot be withdrawn until either the target funding amount is not met or Project is complete. If the target funding amount is not met, 100% of your committed funds are returned to you.

How is an investment made?

Investors initially deposit funds into the PropertyShares Trust Account as Cash Units which can then be used to invest.

How do investors earn returns?

Investors earn returns by investing in any of the real estate debt investments listed on the PropertyShares website. You may receive interest payments either monthly, quarterly or at the end of the project. A share of those payments will be deposited directly into your PropertyShares Cash Account which can be sent directly to your own bank account.

What is a Cash Unit?

A Cash unit is the amount of cash you have available on the PropertyShares Platform to invest

Do Cash Units receive interest?

Yes. Cash Units may receive an interest return. Please check the website for Cash interest rates.

Is there a minimum investment amount?

The minimum investment amount is $10,000 per Project.

What happens if the target funding amount is not met?

If the target funding amount is not met, 100% of funds is returned to you.

What happens if there is more interest in an investment than funding needed?

Investments are closed on a first-come, first-served basis. Once the total listing amount is reached, the offering is closed.

Can I draw an income from my investments?

Yes, all returns can be deposited into your nominated bank account as soon as they become available.

How often are returns paid?

The frequency of payment of returns is dependent on the specific deal. On loan investments, interest returns will generally be paid monthly, quarterly or at the end of the loan. Principal is generally always repaid at the end of the loan although some investments may make regular principal repayments.

Do I have to pay a fee to invest?

Joining PropertyShares and browsing investments is free. Fees for investing can be found on the rates and fees page. Click here.

What kind of updates will I get about my investment?

You will receive monthly or quarterly updates and reports for each investment via email and directly to your online investor dashboard. You will also receive tax statements at the end of each Australian financial year.

Are investments secured or unsecured?

Secured loans are secured First and or Second mortgages over real property. Unsecured loans are not directly secured by a mortgage and generally rank behind the bank and creditors in the event of a default.

What happens if a borrower misses a payment?

If a borrower misses a payment, investors will be informed and PropertyShares will determine what loan modification or loss mitigation options available to address the default by the borrower. PropertyShares will inform all investors if any significant actions are taken on their specific loan investments.

How is risk managed?

This forms part of the PropertyShares ongoing management process. This is managed both during due diligence before a deal is presented to investors and also after it is funded. PropertyShares operates a number of risk, default and enforcement policies on each of its deals.

Are PropertyShares Investments liquid? When will I get my investment back?

Private real estate investments of the type you find on PropertyShares are not traded on a public market. Each investment has a unique projected "term" and is generally not liquid before the end of the term.

What am I investing in?

PropertyShares is a Managed Investment Scheme (MIS), meaning investors receive specific investment Class Units issued by PropertyShares when directly investing in a specific investment. For example if you invest in Property A as a Loan you will receive Loan Units for Property A. Each investment Class created is treated independently of all other investments and is not affected by the success or failures of another investment.

Why do investors invest into a Trust?

By investing into a Trust Structure this minimizes overheads to borrowers and maximising returns to investors. It also allows for streamlined reporting, distributions and tax documentation through the PropertyShares Platform.

If I am invested in Loan A and Loan B loses money could this affect my investment?

No. Each investment is completely separate and the performance of one has no impact on the other.

Are all PropertyShares investments the same?

No, each investment is unique but the process of assessment and presentation of the offering for investment by investors is usually the same.

How do I manage my investments?

All investments can be viewed and managed through your online investor dashboard.

Will I be on the Title of the Property?

No, your name will not appear on the Certificate of Title of the property as you are not taking ownership. PropertyShares Holdings will be the lender of record on the mortgages.

How safe is my investment?

Like all investments, investing in real estate loans does involve risk. PropertyShares assesses and collects information for you to decide on whether to invest in a deal or not. We do not make the decision for you but simply provide you with all necessary information to inform you about the deal. Should something go wrong with a specific investment then that investment will be wound up and the net proceeds returned to investors.

SECURITY QUESTIONS

Is my personal information secure?

Yes. All communication between our users and the website is encrypted and secured using HTTPS and SSL/TLS. We encrypt all sensitive personal information using the AES-256 standard, which is the same encryption standard used by banks. PropertyShares uses Amazon Web Services for data storage. Amazon stores data over several large-scale data centres. According to Amazon, they use military grade perimeter control beams, video surveillance, and professional security staff to keep their data centres physically secure. For added protection, we never store your banking information on our servers and we automatically log you out of your account after 30 minutes of inactivity.

What is AML and why do you need to check my identity?

The AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing) Act is part of a legislative package which brings Australia into line with international best practice. To comply with legislation PropertyShares is required to check the identity of any person or entity making deposits or investments with PropertyShares.

How does the Identity check work?

In accordance with AML/CTF ((Anti-Money Laundering and Counter-Terrorism Financing) and KYC (Know Your Customer) requirements, PropertyShares enlists the services of third party agencies to confirm your identity with databases they have access to.

Why do you need send mobile confirmation codes?

As is commonly done with other financial institutions and banks, to ensure that investments and transfers are not made without your knowledge, verification codes are sent to your designated mobile number. These codes must be entered on the PropertyShares Platform to complete any investment or transfer.

Can borrowers view my personal information?

No. Borrowers cannot see any personal or financial information about you.

How does PropertyShares hold funds deposited in the PropertyShares Investment Trust?

All funds transferred through the PropertyShares Investment Trust are deposited into a Trust Account with Westpac Bank. Funds are kept and accessible in this account until the funds are committed to a specific investment and until the target funding amount is reached. Once the target funding amount is reached, funds are transferred to the PropertyShares Platform for the sole purpose of the specific loan you are investing in. If the target funding amount is not met, 100% of your funds are returned directly to you. Cash in your PropertyShares account can be withdrawn at any time.

How do I withdraw funds from PropertyShares?

Cash and/or interest payments can be withdrawn at any time. Simply go to ‘My Dashboard’, click on ‘Bank Accounts’ and click ‘Withdraw Funds’.

GENERAL INFORMATION

Is PropertyShares a bank?

PropertyShares Pty Ltd is not a bank and is not authorised under the Banking Act 1966 (Cth) and is not supervised by the Australia Prudential Regulation Authority (APRA).

PropertyShares Pty Ltd is a corporate authorised representative of MSC Advisory Pty Ltd (ACN 607 459 441) (AFSL 480649). MSC Advisory Pty Ltd is a related entity to Melbourne Securities Corporation Limited (ACN 160 326 545) (AFSL 428289) who is the Trustee of the PropertyShares Investment Trust.

HELP

How can I contact PropertyShares?

Feel free to reach out through any of our contact channels:
Email - info@propertyshares.com.au
Telephone - +61 (03) 9558 3170

What happens if I forget my password?

If you have forgotten your password, go to www.propertyshares.com.au Click on Login and then click on forgotten password. You will then be emailed a temporary password and a link to proceed.

What should I do if I have a complaint?

Please contact the PropertyShares (03) 9558 3170 or email the complaints team on complaints@propertyshares.com.au. You may also write to:
PropertyShares Pty Ltd
Attn: Complaints Team
Level 10, 440 Collins St,
Melbourne, VIC 3000
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