Best way to get started in property
21/06/18 by GARETH BAIN
Investing
IS YOUR MONEY WORKING AS HARD AS YOU DO?
A lot of people know that they need to invest but what do you invest in? If you have your money in the bank it is currently earning 0.5% per year at best and inflation is 2.7%, so you are actually losing money every day by having it in the bank. So where do you invest? Is it stocks, shares, ISA (Individual Savings Accounts) or property? If property is your answer, do you have enough for a deposit? Do you have a Buy to Let property portfolio already and are you familiar with new government regulations?
Did you know that there are tax efficient ways to invest in property? In the UK, you receive £11,700 Capital Gains Allowance per year, which can be used to invest in property. Most people don’t use their Capital Gains Allowance because they just don’t know about it.
If you decided to invest your money with a fund manager, you should be aware that 9 out of 10 fund managers under perform, yet they still receive commission. It is crazy to think that you are paying them, and they under perform, but unfortunately, that’s just the nature of the industry.
What about investing in an ISA? We have all heard about Cash ISAs but what about Stocks & Shares ISAs or IFISAs (Innovative Finance ISAs)? These ISA wrapped investments allow you to invest in property or stocks and share tax free. For more information about how our IFISA works, click here.
EVERYTHING YOU KNOW ABOUT THE PROPERTY MARKET HAS CHANGED!
Over the last 15 years, property has outperformed the FTSE All Share Index. Property prices have generally increased 10% year on year, with properties doubling in value every ten years. However, those days may be behind us.
As a country we have a fascination with property and property has always been a good investment due to the fact that it generates a passive income, and capital appreciation can be used as a pension and a legacy to leave to your children. But with government regulations, BREXIT and the fear of a recession on the cards we might need to rethink how we have done things in the past.
These days, you are lucky if your rental covers your mortgage, especially in London. With additional tax and the inclusion of 3% stamp duty your buy to let investment is not so profitable. Capital appreciation has started to slow and over the next few years we will see a subdued market.
Some landlords may have found themselves in the position where they have become ‘accidental landlords’. This is where you have lived in a property for years and now that you have settled down and started a family you need to find a new family home, but you don’t want to sell your current property. You want to keep your property for sentimental reasons rather than for financial reasons.
Sometimes the properties which you live in are not the best investment properties. With this in mind, it might be best to sell your first house and either find another investment property or use it to purchase your next property. Last thing you want is those telephone calls at 6am to say that the boiler is not working.
Lastly, we have legacy. Wouldn’t it be lovely to be able to pass a property down to your children? However, what about the inheritance tax? What if one sibling wants the property and the other doesn’t? Do you also want to burden them with the task of now having to become a landlord and deal with tenant issues and regulations changes? Wouldn’t it be easier to just sell the property and put it in an IHT wrapper?
HOW DO I INVEST IN PROPERTY?
So with everything mentioned above, you might be wondering: How do I invest in property?
This is where property crowdfunding can help. At Shojin Property Partners we offer a complete hands-free property investment option. You can invest across the full spectrum of property, everything from Buy to let to property development projects. Depending on your risk matrix you can now diversify your property portfolio and invest in a range of properties instead of one. To find out more about the investment opportunities available to you please visit our products page.
Shojin Property Partners is the only property investment company that offers a range of Debt and Equity opportunities. We charge no management fees to invest but rather co-invest our money alongside yours on every investment. Visit our How We Work page to find out how we can help you on your investment journey.
A lot of people know that they need to invest but what do you invest in? If you have your money in the bank it is currently earning 0.5% per year at best and inflation is 2.7%, so you are actually losing money every day by having it in the bank. So where do you invest? Is it stocks, shares, ISA (Individual Savings Accounts) or property? If property is your answer, do you have enough for a deposit? Do you have a Buy to Let property portfolio already and are you familiar with new government regulations?
Did you know that there are tax efficient ways to invest in property? In the UK, you receive £11,700 Capital Gains Allowance per year, which can be used to invest in property. Most people don’t use their Capital Gains Allowance because they just don’t know about it.
If you decided to invest your money with a fund manager, you should be aware that 9 out of 10 fund managers under perform, yet they still receive commission. It is crazy to think that you are paying them, and they under perform, but unfortunately, that’s just the nature of the industry.
What about investing in an ISA? We have all heard about Cash ISAs but what about Stocks & Shares ISAs or IFISAs (Innovative Finance ISAs)? These ISA wrapped investments allow you to invest in property or stocks and share tax free. For more information about how our IFISA works, click here.
EVERYTHING YOU KNOW ABOUT THE PROPERTY MARKET HAS CHANGED!
Over the last 15 years, property has outperformed the FTSE All Share Index. Property prices have generally increased 10% year on year, with properties doubling in value every ten years. However, those days may be behind us.
As a country we have a fascination with property and property has always been a good investment due to the fact that it generates a passive income, and capital appreciation can be used as a pension and a legacy to leave to your children. But with government regulations, BREXIT and the fear of a recession on the cards we might need to rethink how we have done things in the past.
These days, you are lucky if your rental covers your mortgage, especially in London. With additional tax and the inclusion of 3% stamp duty your buy to let investment is not so profitable. Capital appreciation has started to slow and over the next few years we will see a subdued market.
Some landlords may have found themselves in the position where they have become ‘accidental landlords’. This is where you have lived in a property for years and now that you have settled down and started a family you need to find a new family home, but you don’t want to sell your current property. You want to keep your property for sentimental reasons rather than for financial reasons.
Sometimes the properties which you live in are not the best investment properties. With this in mind, it might be best to sell your first house and either find another investment property or use it to purchase your next property. Last thing you want is those telephone calls at 6am to say that the boiler is not working.
Lastly, we have legacy. Wouldn’t it be lovely to be able to pass a property down to your children? However, what about the inheritance tax? What if one sibling wants the property and the other doesn’t? Do you also want to burden them with the task of now having to become a landlord and deal with tenant issues and regulations changes? Wouldn’t it be easier to just sell the property and put it in an IHT wrapper?
HOW DO I INVEST IN PROPERTY?
So with everything mentioned above, you might be wondering: How do I invest in property?
This is where property crowdfunding can help. At Shojin Property Partners we offer a complete hands-free property investment option. You can invest across the full spectrum of property, everything from Buy to let to property development projects. Depending on your risk matrix you can now diversify your property portfolio and invest in a range of properties instead of one. To find out more about the investment opportunities available to you please visit our products page.
Shojin Property Partners is the only property investment company that offers a range of Debt and Equity opportunities. We charge no management fees to invest but rather co-invest our money alongside yours on every investment. Visit our How We Work page to find out how we can help you on your investment journey.