Compound Investing: How to Automatically Reinvest on the Exchange

One of the most powerful ways to grow your investment portfolio over time is to reinvest your income rather than letting it sit in cash. This is the foundation of compound investing, where your money works for you.

At Housemartin, you receive monthly interest from each property loan you’ve invested in. While some investors may wish to withdraw this income, many want to reinvest it as efficiently as possible to maximise long-term growth and reduce “cash drag.”

Our unfunded buy order feature makes this simple and automatic.

Why Reinvesting Matters

If you decide to withdraw every interest payment, you lose the opportunity to earn returns on those funds going forward. Over time, this significantly reduces your total return.

However, manually reinvesting every month can be a hassle, especially when you have investments across multiple properties.

That’s why we introduced the ability to place unfunded buy orders in advance. Once your monthly interest is paid (or you add additional funds from your bank account), these orders automatically activate and if there’s a corresponding sell order at or below your price, the trade goes through at the best available price without you needing to lift a finger.

What Are Unfunded Buy Orders?

An unfunded buy order is a standing instruction to buy more of a particular property, even if you don’t currently have the cash in your account.

These orders become active automatically whenever:

• You deposit cash, or
• You receive an interest payment from a property

By setting up unfunded buy orders and automatically reinvesting any interest you earn on your Housemartin investments, you can spend less time managing your portfolio but still benefit from the effects of compound investing.

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How Auto-Reinvestment Works (Step by Step)

1. Choose the property you want to reinvest into
2. Place a buy order at a price you’re happy to pay (e.g. £110,000) – No cash needed yet — the order remains inactive but ready
3. When you receive your monthly interest from that property:
   • Your account is funded
   • The buy order becomes active
   • If there’s a matching sell order, a trade happens automatically
     

You don’t need to log in each month — your buy order is already in place and will activate as soon as the money arrives.

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Always Gets the Best Price and Priority with Reinvestment

You can place a buy order at any price you’re comfortable with — but you’ll always trade at the lowest available sell price when your order activates, so you can set your price with confidence.

Even better, when interest payments are distributed, buy orders in that specific property are prioritised. That means your reinvestment order gets first access to any sell orders in the same property — before your other buy orders in different properties become active. This ensures interest is automatically and efficiently reinvested where it came from, without you needing to log in and manage it.

Example:

• You place a buy order for Property X at £110,000
• When your interest is paid, the current best sell price is £108,000
• Result: You automatically buy at £108,000, not £110,000

You Can Set Multiple Orders at Once

You’re not limited to one reinvestment order. You can:

• Place unfunded buy orders across multiple properties
• Use interest payments, top-ups, or both to activate them
• Interest reinvestment gets priority
• Diversify across properties without needing to micro-manage every transaction
  

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Key Benefits of Unfunded Buy Orders

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How to Set Up Unfunded Buy Orders

1. Visit the Exchange page for any property
2. Click Buy and enter the price and amount you’d be happy to invest
3. Confirm the order — no cash is needed right away
4. Sit back — your order will automatically activate when your account is funded
   

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Questions?

If you’re unsure how this works or want help placing your first order, feel free to get in touch at support@housemartin.co or book a call.

Let your interest work harder — and smarter — with auto-reinvestment on the Housemartin Exchange.