CAPITALRISE has become the latest platform to unveil its Innovative Finance ISA (IFISA), ahead of a new property project it prepares to launch next week.
The crowdfunding platform, which specialises in prime London property, lets individuals invest a minimum of £1,000 in the tax-free wrapper, targeting annual returns between 10 and 14 per cent.
The forecast annual return for an ISA investment is currently 0.5 per cent lower than the return on a standard investment to cover ISA administration costs, CapitalRise said on its website.
It costs the platform double this to administer the ISA, but it will cover the majority of these costs as a special promotion to celebrate the IFISA launch, the company said.
The platform has so far raised more than £3m across three deals, in areas including Knightsbridge and Belgravia, which are on track to return at least 10 per cent to investors.
The most recent deal closed in just 71 hours, it said.
The fourth deal will open on Monday 20 March and looks to raise £1.2m to fund the development of Strand Chambers, a residential development on the Strand.
The platform typically provides an extra layer of protection by ensuring that developers take the first hit if a project makes losses. Moreover, CapitalRise’s original founders invest their personal money in every deal, giving them ‘skin in the game’.
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“Our prime real estate IFISA provides savers with an opportunity to access an historically top performing asset class – prime residential property – held in a tax-free wrapper,” said CapitalRise’s chief executive Uma Rajah.
“In the current low interest rate environment and with inflation predicted to rise significantly in the short term, we believe this will prove very attractive to UK investors and the hundreds of customers who’ve already registered with us.”