Tag: Expats

Get your house in order! But how during turmoil?

If you’re a property investor, alongside your day job or an Expat investing at distance, there’ll be things on your mind currently. Like how to get your property investing on a sound footing or getting your ‘house in order’

If you’re not investing full time and property is not your career, then you might be finding it tricky to keep up with what is going on in the property world. Especially with so much world turmoil post Covid and with a war at the heart of Europe.

But keeping some of the fundamentals in mind can help.

So what are they?

Clarity of property strategy

If you have spent time thinking carefully about your strategy and how it fits with your lifestyle and needs, then don’t fling caution to the wind and change.  That’s not to say, stay closed and doggedly pursue a strategy that is not working.

Getting house in order, London, UK


If you have a long term investment horizon then that helps buffer you against some of the short term market issues and sometimes they are not long-lasting… If you are targeting the right tenant type, then persist but adapt. Changes to market conditions like the ‘WFH’ Working from Home Phenomenon have created a different type of housing demand.


Taking control of ‘getting your House in Order’

At a time when the world feels like it is out of control it is worth spending time and effort on those things you can take control of…

Simple things like making sure you are claiming for all the expenses available to you. For example travel costs for property inspection visits, that mounts if you live abroad.

Or scrutinising your property outgoings and ensuring all the services you pay for are still valid and needed

If you are not sure what you can take control of, or whether you have a tried and tested strategy that will work for you, then perhaps now is the time to reflect? Or work with someone who is rooted in the property world and understands the kind of challenges you face and who can help you do just that.

I have helped expats and busy professionals find the right approach for them to invest, even in trying circumstances.

I have a tried-and-tested approach to help discover the optimum investment approach for clients.

If you’d like to book a chat to find out more, visit here

Or get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

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What opportunity in the UK property market for expat investors?

UK property: Sales

As we are nearing the end of the final phase of the Stamp Duty (SDLT) holiday at the end of September (on the first £250k of property purchases) it seemed apt to reflect on how it may have helped or distorted the market.

The volume of UK House sales declined in July after the 1st main SDLT holiday ended. Tax data showed that residential purchases were 63% lower than in June. So the number of housing transactions fell, but what effect did it have on house prices?

A recent article in the Financial Times quotes a study by the Think Tank Resolution Foundation which reveals that the biggest house price rises were in areas that least benefited from the SDLT tax cuts. So the SDLT holiday may not have distorted pricing as much as many people think.

UK property: Rental market

On the rental side, more Institutional Investors are coming into the rental market, attracted by the demand, returns and stability offered. Today’s rental market has changed dramatically. Demand has continued to increase, with 1.7 million more rental households in 2017 compared to 2007, according to the ONS.

Build to Rent

Institutional investors are entering the market at scale with Build-to-Rent. Purpose-built Build to Rent is a new concept in the UK, which started around 2016, but a model common in other countries like Germany and elsewhere in the European Continent. It means tenants rent off a Corporate landlord. In theory tenants are offered a more consistent service level, in return for higher rents when compared with some of the private rentals on the market.

Landlords like: John Lewis, Legal and General and now Lloyds Bank is the latest to enter the housing market with the intention to buy and rent out 50,000 homes in the next decade. They may offer longer tenures that many tenants crave, but are likely to push rental prices up.

Future for UK First time buyers?

In the end the market may be shaped in a different way. Still difficult for First Time Buyers, as prices are so buoyant and inaccessible. Yet with more rental stock potentially becoming available, the UK housing market could start to look a bit more like Continental Europe in nature in the future.

This presents opportunities for investors in the buy-to-let sector. As prices are still inaccessible for many and the rental sector becomes more homogenised and potentially expensive, renters will still want character, individual properties in the right locations. The bigger block build of Build-to-Rent won’t necessarily be in the optimum locations that many individual, resale properties might be

If you want help on your property investment journey then get in contact +44 (0) 1932 849 536 or e-mail info@property-venture.com

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property firm that finds the right investment properties for clients.

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Prospects for the UK property market beyond tapered SDLT?

House prices seem to be rising inexorably.

House price inflation is at 8.9% – taking the average house price in England to £268,380. The volume of transactions are also up by about 30%.

Yet the monthly price change in April was – 1.9%.* Whilst we should not read too much into a month-on-month change, it might indicate a slowing of inexorable price rises.

UK Housing Manchester apartment block

The UK property market has continued to surprise. Given the country has been through the protracted Brexit negotiations and then had to face the Covid-19 pandemic, it has remained remarkably buoyant.

Arguably housing is often seen as a safe haven asset during times of political and economic volatility, which may explain some of this sustained activity.

Low mortgage rates**, meaning that borrowing is relatively more affordable for property investors and homebuyers alike, has sustained demand. All at a time when there is still a systemic supply imbalance, meaning prices are pushed up.

Anecdotally vendors have been maximising what they can achieve for their homes during the rush to hit the various SDLT holiday deadlines. This may have mitigated any potential tax savings for the buyer by baking them into vendor asking prices.

Timing entering the UK Property market?

There is never a ‘perfect’ moment for an expat to invest for the first time, but often it can come down to an individual vendor’s readiness to negotiate, not the whole market, although the market obviously influences vendor sentiment and price expectations.

There are indications the property market might now be less heated than it was. The latest Land Registry HPI for April shows that monthly price changes in England are down marginally. This coupled with the big SDLT savings being greatly reduced from 1st July may mean the rush and sense of urgency could abate in the Autumn/Winter period.

If you would like help finding the right property for you then please get in contact.

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Disclaimer: Property Venture® is not a tax adviser but has outlined information in layman’s terms to enable top line comparisons, nor is it offering advice.

With regard to in-country legislation, letting licences and taxation laws, then you must take appropriate legal or taxation advice during your purchase process, at which time your solicitor or advisor will discuss with you up-to-date legislation and costs

*Office for National Statistics using the latest April data

** Bank of England Base Rate has stayed under 1%, for over a decade, significantly less than during the global financial crash when the base rate in July 2007 was 5.75%

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Expat property investor implications of the UK’s Budget

With the biggest contraction in the economy for 300 years (-10%) the Office for Budget Responsibility (OBR) nevertheless predicts a swift recovery from November. The economy – as measured by GDP – is set to rise by 4% this year, up 7.3% in 2022 and increasing by c.1.6% in the following 3 years. The economy is expected to be back to pre-Covid levels by the middle of 2022. 

This bounce back is encouraging news as it supports investor confidence and provides the bedrock for the property market.

Expat Property Investors – what things of note?

Stamp Duty Land Tax (SDLT)

We have all been holding our breath for this one. The SDLT holiday extension is happening as widely trailed, providing an additional 3 months with the nil rate band of SDLT on purchases up to £500,000 to the end of June and a further 3 months on purchases up to £250,000 from July to September 2021. The 3% investor additional SDLT continues as normal during this period.

Devon Housing-near Plymouth

The intention is to maintain confidence in the housing market following the coronavirus (Covid-19) pandemic.

From the 1st of October the ‘old’ stepped system kicks back in with SDLT charges starting at £125,000 threshold.

However the non-resident 2% SDLT surcharge – of which little is announced – is still due to go ahead. More here.

Capital Gains tax (CGT)

No increase was mentioned in this budget – although it was widely expected there would be – but the limits have been frozen along with personal tax allowances which will be increased to £12,570 in April 2021 but held at this level until 2026.

Corporation tax

Corporation Tax is being increased substantially from 19% to 25% from 2023. This is relevant for those of you holding properties in a Limited Company or thinking of doing so. Although smaller companies with profits of up to £50,000 will continue to pay the lower 19% rate, capturing an estimated 70% of companies.

Construction Industry boost?

A new term has been introduced, that of ‘Super Deduction’, whereby companies investing in new plant and machinery can reduce their tax bill by 130% of the cost of the qualifying investment value. This temporary first year deduction replaces previous reliefs and allowances. This will stimulate business investment and help the construction industry.

Mortgage Guarantee scheme for First timebuyers

The Government announced its First Time Buyer mortgage guarantee scheme which enables them to buy with a 5% deposit and 95% mortgage loan. The Government underwrites the risk of the higher loan-to-value. This has brought the big high street brands on board with this scheme.

The Help-to-Buy scheme is being phased out. This ‘Mortgage Guarantee’ is a better deal for First Time Buyers because they aren’t restricted to new builds (which Help-to-Buy did) it applies to resale properties too. Given there is usually a premium attached to new builds and more so with Help-to-Buy new builds, which have a captive market, they are likely to be buying at keener prices all round.

It may be that many First Time Buyers can afford the monthly mortgage payment but just haven’t been able to get the deposit together, particularly in the South East.

Although the incentive for developers to build new housing is diminished, given Help-to-Buy gave developers and builders confidence to build because they had a ready market of First Time Buyers, so may not increase housing supply, it keeps the property market liquid.

The Government’s Levelling up agenda

The government has announced 8 ‘Freeport’ sites across the country. This means there will be tax incentives for businesses to base themselves in these designated areas. For example purchasers of land and buildings situated inside Freeport tax sites located in England will be able to claim relief from Stamp Duty Land Tax, subject to a ‘control period’ of up to 3 years (until 30 September 2026) and the land being acquired and used in a ‘qualifying manner’.

The 8 designated Freeport locations are:

  • East midlands airport
  • Felixstowe & Harwich
  • The Humber
  • Liverpool City region
  • Plymouth
  • The Solent
  • Thames
  • Teesside

What’s more the government announced a new economic campus beyond Westminster, in Darlington for parts or the Treasury, MHCLG and Department for International Trade.

These present opportunities for investors if you include inward investment and infrastructure improvements as part of your investment criteria.

If you would like help finding the right property for you then please get in contact.

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the ‘right’ properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Disclaimer: Property Venture® is not a tax adviser but has outlined information in layman’s terms to enable top line comparisons, nor is it offering advice.

With regard to in-country legislation, letting licences and taxation laws, then you must take appropriate legal or taxation advice during your purchase process, at which time your solicitor or advisor will discuss with you up-to-date legislation and costs

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Another Lockdown. Another day in UK and Europe

We are all rightly concerned about Lockdowns and their effect on us and the economy. And it can be unclear whether we are doing the ‘right thing’ or not. We can put things in context if we take a look at our Continental European neighbours.

Understandably people question Lockdowns, yet it isn’t just the UK. France, Italy, Spain and even Germany – which has proved to be efficient in its Test-and-Trace programme, are imposing similar lockdowns and restrictions.

By mid-October 240,000 people lost lives in Europe with an estimated 7m infections, so many countries have felt the need to act.

The European economies, as measured by Real Gross Domestic Product (GDP), fell 40% in 2nd quarter of 2020 and more developed nations have felt the worst effects. 54m workers have been supported by some job retention scheme or another.

Projections are for European economic activity to suffer a 7% GDP decline in 2020 – the biggest since World War II, followed by a rebound of +4.7% in 2021

Economic activity would have been 3-4% lower in 2020 with none of this support according to the International Monetary Fund (IMF) .

European Impact of a 2nd round of the pandemic?

Addressing the concern about the amount of government spending, the (IMF) takes the view that Governments can’t afford not to spend, given it keeps people in jobs and businesses going. It is avoiding ‘Economic scarring’.

And it will be a very long ascent for most countries to get back to pre-2019 economic levels, possibly by 2022-2023. Governments will need to work at shrinking the debt and create stronger financial buffers, in a similar way to how banks addressed the 1997 Credit Crunch. Banks have remained resilient given their levels of capital, which have withstood a liquidity crisis this time around.

EU Countries have access to the European Recovery Fund. On average these funds will supply 3% of GDP and can help enhance growth by 0.75-1.5%. Some countries are suffering more than others.

Spain a big holiday home destination

Spain’s economy is affected more than others owing to the structure of the economy. For example hospitality and tourism are large economic sectors. It also has lots of small and medium sized companies which lack the resources of larger companies, as well as lots of temporary employment contracts.

Portugal a lifestyle choice for home buyers

Portugal too has a large Tourism industry, which is creating a big domestic effect, given all the travel restrictions.

UK – a favourite for expat property investors

The economy is forecast to decline by slightly more than Germany and France.

As for the property market, comparisons have been drawn with the Credit crunch of 2008. During the credit crisis UK property prices declined 19% from a peak in Sept 2007 to a trough in March 2009 (Land Registry). But the UK government stimulus now is far more than the stimulus package in 2008 and it is this which will help determine how quickly and by how much the economy recovers by.

The UK property market is currently buoyed by a flurry of buyers. Both homebuyers seeking to enhance their living space and investors rushing to beat the Stamp Duty holiday deadline of the end of March 2021.

At what stage will property market buying peter out?

We will see this activity slow once the reality of unemployment hits the market. London has already been affected as many migrant workers return home because jobs are hard to come by, leaving a larger than usual supply of rental properties. And as some residents migrate out to the suburbs and Home Counties where they get more living space.

The longer term impact on prices is likely to depend heavily on economic factors; growth, earnings and unemployment. 

The UK has long had a supply: demand imbalance and the building industry has been trying to keep up with the annual supply of houses. That remains the case and is now exacerbated by supply chain issues, slower conveyancing processes and a lack of resources at Local Authority level hampering local searches and causing delays in the buying process.

Expats who are still considering their investment plans given the introduction of the 2% stamp duty land tax surcharge for non-UK residents from April 2021, please get in touch.

Source: * IMF (annualised Quarter vs Quarter)

If you would like help finding the right buy-to-let properties for you then please get in contact.

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the targeted amount of properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Compliant members of the PRS scheme and on the Advisory Board of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. This is what our clients say



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How to continue UK investing during lockdown?

There is so much uncertainty currently.

The Trump: Biden standoff, not only an unseemly moment for the USA but for Democracy globally.

Surrey Buy-to-let investment property

Due diligence can reduce uncertainty when investing in residential property by spending a significant amount of time researching and doing  analysis before jumping to site visits.

• Can the area deliver your target yields and capital growth aspirations?

•  If it can, is this likely to attract your ideal tenant type?

• And can you afford the type of property you want, whether it be freehold or leasehold, or number of bedrooms?

If you are in rush to beat a deadline, what about the sale status e.g. is there a chain? Has the vendor got other options which means they might be less flexible on price?

All of this before physical site visits, which – for me – are not only to view properties but also to see how professional the estate agent is when conducting the viewing. Are they adhering to best practice Covid guidelines? I tend to use this as a proxy for professionalism. If they’re professional during the sale, they are likely to be professional management agents and serve you well during a lockdown.

If you would like help finding the right buy-to-let properties for you then please get in contact.

My business focuses on helping time-strapped expats and busy business people who don’t have the local presence, or capacity, to acquire the targeted amount of properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Compliant members of the PRS scheme and on the Advisory Board of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. This is what our clients say



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Does Expat property Tax have to be taxing?

I have lots of property conversations with expats and there is always the thorny issue of what’s the best way to set up property investing tax-wise. So how to simplify a complex issue?

There are a few things worthy of consideration.

Should Investing be personal? Or via a Special Purpose Vehicle?

One of the challenging questions is how to set up your investing at the outset; buying personally or going down a Special Purpose Vehicle (SPV) route, which could be via a Limited Company (Ltd Co.) route or a Limited Liability Partnership (LLP) route.

Evidently everyone needs to have tailored advice for their personal situation, but are there any Rules-of-Thumb or principles that can be borne in mind?

Level of Borrowing

A key determinant is how you are going to finance the property purchase. If you plan to have a lot of borrowing, then it is worth giving serious consideration to buying via a SPV otherwise you could end up paying tax on ‘nominal’ income, given how the mortgage interest tax relief works for personal investments.

Prior to April 2017, landlords could deduct their entire mortgage interest costs as expenses against the rental income they earned. They would then pay tax at their personal tax rate on the remaining profits. Now though, mortgage costs are not treated as an expense, a 20% tax credit is used instead. This means higher-rate taxpayers are hit hardest and basic rate taxpayers could be drawn into the higher rate tax bracket unwittingly, by virtue of gross rental income being added to other forms of income.

Company structure

Limited Companies have a different tax structure, with Corporation Tax levied, currently at 19% for profits generated. And if you choose to take  dividends as a way of extracting profits from the company, dividend tax is applicable in addition (current rates), but you can time your dividend payouts for maximum tax-efficiency, or leave the profits rolling up within the company to buy the next property. A Ltd Company can help with IHT planning as well. Stamp Duty Land Tax (SDLT) still applies though.

So there is a constant tension and balancing between mortgage interest deduction, Stamp Duty Land Tax and the various other tax rates.

There are some accessible things you can do if married. You can apportion ownership between spouses – via a Declaration of Trust and assigning Beneficial Interest. Bear in mind you can’t just shift income between spouses, unless it is matched by a commensurate capital holding, or aligned with beneficial interest.

You can also do 90:10 split in a LLP vehicle.

Property Price point

The solution might be different whether you are buying at an accessible price point in the Midlands and up North, or at a higher SDLT tax band in London or the South east.

Non-resident investors used to be able to sell property free of Capital Gains Tax but that is no longer the case.

Number of properties

If someone is just starting out with 1 or 2 properties vs a portfolio landlord with 4-5+ properties, it is important to have a view at the outset of how many properties you intend invest in. It is harder and more expensive to switch from a personal investment to a Limited Company, but it is possible to hold properties in a mix of ways.

Nature of buying – trading or investing?

Are you a property trader or investor?

If you buy a property to make value-added improvements and sell on for a profit, you’re a developer or a trader. So you are likely to be better off buying as a limited company, given you have more flexibility for taking profits. As an individual you are more likely to have your gains taxed as income.

If you are a buy-to-let landlord you fall more into the investor camp. Traditionally investors have operated as personal investors, but some could benefit from using a limited company since the 2017 tax changes.

Personal vs Ltd Company mortgages

It’s important to consider the whole picture, not just tax. Lending is approached differently for a company vs personal secured borrowing so you need to also consider ability to borrow. Whilst there are more lenders who offer mortgages to Corporate bodies now, there is still more limited choice than for personal lending and what there is for Ltd Companies, usually comes at a premium to personal lending.

Top Tip – You need to take care unless you are holding – or plan to hold – a lot of properties – that you don’t end up spending more on the investment structure than you actually stand to make

Based on content from a Webinar interview by Louise Reynolds with Churchill Tax advisers

If you would like help finding the right properties or tax help then please get in contact.

My business focuses on helping time-strapped expats who don’t have the local presence, or capacity, to acquire the targeted amount of properties for them. Property Venture® is an award-winning, Boutique property consultancy that finds the right investment properties for clients.

Compliant members of the PRS scheme and on the Advisory Board of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. This is what our clients say

Our clients get regular updates on hot deals and the latest changes in the property market. Want these? Go here

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What next for property investors in UK and Europe?

Well we are all expecting that not much will change in the UK during the ‘Transition Period’ in 2020, or at least have been told as much.

Given the UK is outside the Schengen Zone – which provides for unchecked border crossings in a common-visa area – border checks for holiday-makers and business travelers have been the norm travelling to and from the UK during membership of the European Union. There is anecdotal evidence that some Continental European countries are tightening up border checks, where previously they may have been more relaxed. For example some border mountain passes between France and Italy have been reported to be tightening up on identity checks for ski instructors who have, until now, traveled back and forth freely on a daily basis.

Houses of Parliament: London UK Property market

Thinking beyond the ‘Transition Period’, the renewed gusto with which the UK government is brandishing the potential ‘Hard Brexit’ mantle has been unsettling and it is hard to unpick the political rhetoric and negotiation posturing from the reality.

For expat and entrepreneur UK property investors some of the things you will want to know are:

  • Am I still going to see my investment property perform?
  • How might mortgages be affected?
  • How will the economy and job creation fare?
  • How much red tape will be stripped away or created when investing for European-based expats?
  • How might my portfolio in UK and Continental Europe be affected?
  • What will be the changes, if any, travelling to and from the UK?

So just to focus on a few of these..

Am I still going to see my investment property perform?

Your property’s investment performance, whether a buy-to-let or HMO or Serviced Accommodation, that potentially serves an international tenant base, depends a lot on attracting the right type of tenants and minimising voids. Arguably many of the Europeans who intended to leave, may already have done so and the situation may not get that much worse. In 2018 it was estimated 3.35 million people with EU, EEA, or Swiss nationality were living in the UK. Of these 2.8m people had applied for Settled Status, about 80% of the total number. If the relationship between the UK and Europe worsens significantly this could be exacerbated in the short term. However the UK will remain an attractive place to be for non-European nationals.

Raising finance – mortgages how will they be affected?

The City and financial markets could be hit by the renewed talk of a ‘Hard Brexit’. The stance has been that the city wants to continue trading with the EU as now, meaning equivalence rules across fund management and investment banking. Divergence could have an impact on savings and pensions. There might be a sweet spot where some divergence could work and could be acceptable to EU regulators, which could make a difference to British savers and mortgage borrowers. There is now more talk of ‘outcomes-based equivalence’ meaning third-country regimes do not need to be identical but must have the same “outcomes” as EU rules to give access to its markets.

How this might affect mortgages at this point in time is difficult to assess, but affordability tests could be affected.

In the short term we might notice some subtle differences when travelling, but it might not be until the end of 2020 we get to see what is political-posturing versus economic reality.

As for the economy and red tape it might be too early to tell. However it does feel as though the UK is far more engaged since the December 2019 General Election in pro-actively shaping its future.

If you would like to discuss your situation or find out more then please get in contact.

I work with time-strapped expats and entrepreneurs who don’t have the capacity, local presence or gaps in their know-how to build property portfolios in the right way for them. (Or who are simply stuck with little progress). This means you can carry on your day-to-day lives without spending disproportionate time getting sucked into investing.

Our clients get regular updates on hot deals and the latest changes in the property market. Want these? Go here

Property Venture® is an award-winning, European investment property specialist and sits on the Advisory Board of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients say

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What does ‘Alternative Investing’ mean for entrepreneurs and Expats?

I recently participated in a panel on how to be a ‘Savvy Investor’ with a core topic of conversation being Alternative Investing.

What is it? It is investing in non-regulated areas, which means they aren’t fully regulated by the FCA (Financial Conduct Authority). This captures a lot of property and property-related investing, such as peer-to-peer lending for property activities. By way of example, this can be lending to a specific developer in the form of a mini bond, (non-tradable on an Exchange) or it can be investing via a Crowdfunding Platform, a regulated ‘website’ that facilitates this process.

Unfamiliar with peer-to-peer lending and crowdfunding?

This is a relatively new sector in the market, under ten years’ old and it is an interesting time to be investing this way.

On the one hand it is ‘democratising’ the investment process, it offers property investing in bite-size chunks, with lower threshold entry levels for investment and easy access. Because of all of these things, it is starting to become a more popular way of investing in property and more mainstream, providing serious competition to mainstream bank lenders.

It has been given more of a cloak of legitimacy since the launch of IFISAs in 2016 (Innovative Financial ISAs which allow property investing as part of the tax-free wrapper).

But we mustn’t forget there are risks associated with these types of investments. There are no guarantees so everyone has to weigh up their own situation and risk profile. And make sure they are not over-stretching themselves financially.

Why might entrepreneurs invest in property via a crowdfunding platform?

Some landlords and property investors are seeking ways of continuing their property businesses in a way that will give some reprieve from the landlord red tape and tax that has become burdensome in the UK.

Investors can be attracted because it is a way of diversifying their activity, getting exposure to a number of different investment categories; either different geographies, or different types of property, for example commercial vs residential property, or the opportunity to work with a developer they might otherwise not be able to.

They can also do this in a measured way, in bite sized chunks. Some investments start at £5,000 or £10,000, some lower, particularly if part of an IFISA, where entry levels can be £1,000. Investing via an IFISA, (Innovative Finance Isas) can be tax-efficient, when used as part of a personal Isa allowance, so returns can be tax free for UK residents.

What are the upsides of Crowdfunding or investing via a property mini bond?

The returns on offer can be inflation-busting and much higher than other forms of investing. They are not always correlated with economic returns, so help spread risk during different economic cycles.

They also usually offer defined timeframes (although there are no guarantees) so this can help with planning.

Investing via a Crowdfunding website or platform can make the process quick, easy and accessible. Progress can usually be checked through a console. Many Crowdfunding platforms also do a level of due diligence which some investors like, but it is important to check what level and type of due diligence they do, so you are not lulled into a false sense of security.

What to remember when investing via Crowdfunding or developer mini bonds?

These types of investments aren’t guaranteed so it is important to check on the type of security offered for if things don’t work out as expected. Is it a registered charge on the property or land, or assets?

And how is this set up, via an independent Security Trustee holding and administering it on behalf of investors or something else?

What type of investing is being made? Are you seeking a share of equity, so that you get the upside and downside risk of a development project through shares in a company set up for a particular development?

Or lending money to a developer for a fixed return, over a fixed timeframe and the capital returned at the end of the term?

It is important to note that alternative investing provides an alternative way for entrepreneur investors to get exposure to all that property can offer, but this way of investing is not guaranteed. Capital is at risk and returns are projected, not guaranteed (or shouldn’t be claimed to be). These investments are also not very liquid, should you wish to cash in early, or redeem an investment. This is why many of these types of investments, whilst being accessible, tend to be appropriate for individuals with a certain asset base or income, or who aren’t investing too much of their money in any one of these investment types.

If you would like to talk then please e-mail info@property-venture.com with a telephone number to arrange a conversation.

I work with time-strapped Expats and Entrepreneurs who don’t have the time, local presence or have gaps in their know-how to build property portfolios in the right way for them. (Or who are simply stuck with little progress). This means they can carry on their day-to-day lives without spending disproportionate time getting sucked into investing.

If you want to talk through your plans and get clarity then please get in contact by telephone +44 (0)1932 849 536 or contact us

Our clients get regular updates on hot deals and the latest changes in the property market. Want these? Go here

Property Venture® is an award-winning, European investment property specialist and sits on the Advisory Board of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients say

Property Venture® is not a member of, nor regulated by, the Financial Conduct Authority and does not provide regulated advice. Past performance is not an indicator of future performance and should not be relied upon when making an investment decision. Investors should carry out their own Due Diligence and seek independent financial advice.

Property Venture® acts as an introducer. Neither Property Venture® nor any of its Directors, employees or representatives will be liable for damages arising out of or in connection with the use of any information provided or any action taken in reliance on any information appearing on this website, in information sent out in printed or written format, or verbally.

All rates quoted, statistics, facts and information, were deemed to be relevant at the time of posting; however we can accept no responsibility for the on-going accuracy of the details contained within this website, or other documentation, or for error and omission.  We rely on data provided by 3rd party sources in some instances and whilst we endeavour to provide only accurate information, we make no warranties as to the accuracy or completeness of the information provided. The information you will see is for guidance. Intending purchasers should not rely on information given as statement of fact, but must satisfy themselves by inspection or otherwise as to its accuracy and conduct independent due diligence.

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Expat investors what’s different about what you seek?

Following an exploratory business trip to Dubai, I reflected on what Expat investors look for when buying investment property back in the UK. This can be for wealth-building reasons, to provide for a family or as part of lining up a retirement plan. Continue reading Expat investors what’s different about what you seek?

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