Manchester’s very on The House Crowd, the world’s first property crowdfunding Platform, has launched its first IF ISA product, which gives investors 7% p.a. tax free returns.
Investments start at a minimum of £1,000 and can go up to a maximum of £20,000 in any one tax year. Funds are automatically diversified across the whole of The House Crowd ISA property portfolio and can be transferred or withdrawn after the minimum investment term with three months’ notice.
The minimum investment term is three years, with interest – at 7 per cent – paid out twice a year. No money transfers between accounts are allowed at present, but this is expected to become possible from June 2018.
Investments receive no protection from the Financial Services Compensation Scheme (FSCS). However, the money is invested in loans that are secured against the underlying value of property. In other words, investments are secured by legal charges against land or property assets in accordance with House Crowd Finance’s underwriting manuals.
“We are very excited to be able to offer our investors the chance to benefit from our first IFISA,” says Frazer Fearnhead, co-founder and CEO of The House Crowd. “We believe this is the ISA that’s going to get Britain building and help solve the housing crisis. We need to be able to utilise funds quickly and effectively, so we intend to limit initial investment to just £2M. We will release other IFISA products in 2018 tax year with different terms and criteria.”
Fearnhead continues: “It’s our mission at The House Crowd to help clients build themselves a better financial future. We provide secured peer-to-peer property lending investments that deliver every time. And, most importantly, investors in these secured loans since we started offering them 3 years ago have not lost any capital. Now they are able to earn attractive returns with the same level of security within a tax-free wrapper.”