Is your money working hard enough?

16/07/18  by GARETH BAIN

Do you have investments, such as stocks, shares, and ISAs?

Have you invested in property?

If so, have you got any property investments that aren’t buy to let?

Is your money working hard enough?

With inflation at 2.7% and banks paying 0.5% per year, if the answer is no, then the chances are, you’re loosing money every day.

For example, do you use your £11,000 Capital Gains Allowance when you’re investing in property? It’s tax free and very few people use it, simply because they don’t know how. What’s more, do you use your tax allowance? Do you know how your investments return, or how much you’re paying in fees? Are your investments right for you at this time in your life?

There are so many things to consider when it comes to property investment, so it’s vital that you have a good understanding of everything from the best way to get started in property investment, through to where to invest in property, and how to manage high risk investments.


When it comes to investing in property, everything you know has changed.

Whereas, at one time, buying property to let would allow you to generate a passive income, whilst enjoying capital appreciation and tax efficiency, in today’s market, property is not appreciating as well as it used to and, over the next few years, it is set to continue to be a subdued market.

What’s more, in today’s world, the rent generated from buy to let property hardly even covers the mortgage, let alone providing an additional income. Tax changes are also making it harder to make a profit from buying your own property.

The introduction of new regulations has also meant that owning property is no longer sustainable, unless you do it on a large scale. Legislation has very much turned against accidental landlords.

And, where property was once a great legacy to pass on to younger generations, today inheritance tax means it is better to sell the property and put it in an IHT wrapper so that your family are not left to deal with the necessary regulations.


Despite the points discussed above, property remains a great investment – you simply need to find the right opportunities. 
In the current market, property investment opportunities lie in:

First Time Buyers
 – Those who graduated in 2007 have been unable to get on the property ladder. In response to this, the Government has stepped in with a Help to Buy scheme, providing up to 80% of the equity required for a property. This opens up ample opportunities.

 – As the population ages, many of them are starting to downsize and are struggling to find the right properties in the right areas.

Assisted Living
 – With an aging population and people living longer and longer, more and more people are turning to Assisted Living to meet their needs.

 – These specialist properties are designed to meet the needs of students and young professionals.

Private Rental Schemes
 – These blocks of flats owned by one landlord are popular with the younger and renting generation.

Student Accommodation
 – The student population is growing, increasing the demand for student accommodation close to universities and towns.

 – As many office buildings have been converted into residential properties, there is now a need for more office spaces.

 – With high street stores moving online, there is an increasing demand for warehouse space where stock can be stored.


Crowdfunding is an increasingly popular form of investment and fundraising.

The process is simple – there is a borrower who needs money and an investor who has money. A crowdfunding company then sits in the middle of the parties, acting as a broker. However, in some cases, the investor doesn’t truly understand the investment and, if anything goes wrong, is left disillusioned. Under this model, no one is looking out for the investor and it is their responsibility to carry out due diligence before making an investment.

Shojin has created a new type of Crowdfunding – Property Crowdfunding 2.0. Working on the same principle as traditional Crowdfunding, we connect a borrower who needs funding and the property investor who is looking to invest their money, but instead of just connecting with both parties with partners with each and align our interests with both parties.

When a borrower approaches us with a project, we run all of the numbers and due diligence. If were happy with the project, we’ll then put our own money into the project and put in on our platform for investors. Under this model, we oversee the entire project, ensuring it stays on track. We don’t take any fees upfront but rather co—invest our own money into the project, only taking it out once the project has been successfully delivered. By partnering with both parties, all of our interests are aligned.

Crowdfunding offers a number of opportunities when it comes to property investment, including:

Access to more opportunities

Diversify your risk
Hands off investment
Income and capital growth opportunities
Tax efficient investment
Create a diverse portfolio


There are a wide variety of property investments available, each offering different levels of risk and return. Traditional buy to let investment, for example is relatively low risk but offers low returns.Crowdfunding allows you to invest in products that provide income or capital growth and, as your life cycle changes, you can move across the risk profile in line with your needs.Key investments include:

Bridge loans

Mezzanine loans
Development equity

To find out more about Shojin Property Partners investment opportunities visit the products page on the website.