INVESTORS are being offered a six per cent annual return from a new Innovative Finance ISA (IFISA) established by property investor Safe as Houses Group.
The Safe As Houses ISA, unveiled on Friday, invests in loans made to Safe as Houses Group to develop, regenerate and sell on distressed properties.
IFISA returns are generated from the profits made on the purchase, refurbishment and sale of specific classes of carefully vetted property valued by RICS-qualified surveyors, the company said.
The IFISA has a five-year term and requires a minimum investment of £5,000.
Safe As Houses Group is an appointed representative of Gallium Fund Solutions, which is authorised by the Financial Conduct Authority.
“The launch of The Safe As Houses ISA is another step forward for investors looking for more flexibility and innovation in the way they invest,” said David Ritchie, spokesperson for Safe As Houses ISA.
“The property market’s strong past performance is not necessarily a reliable indicator of how it will perform in the future, but it remains amongst the best performing major asset classes over recent decades.
“The executives at The Safe As Houses Group have considerable combined experience in the property sector.
“The company has tried to put simple protections in place, like the re-investment of 80 per cent of profits. We do this voluntarily as part of our lending criteria, so we do not need to employ teams of staff to implement a complex regulatory regime.”
Read more: Ultimate guide to property IFISAs