This month, we provide details on some of the property-focused IFISAs on the market.
CapitalRise provides loans for development projects, mostly in Prime Central London. Investors self-select their loans and projects and can earn average interest rates of 10 per cent tax-free. There is a minimum investment of £1,000 and you can withdraw and invest during the same year without impacting your allowance. There is a secondary market to sell loans.
Kuflink offers tax-free returns ranging between five and seven per cent per year, depending on the investment term. There is a minimum investment of just £100 in its IFISA. There are no investment or withdrawal fees and you can either self-select or have your loans automatically chosen.
Landbay offers buy-to-let mortgages. Investors’ funds are automatically allocated and diversified so you cannot select individual loans. There is a minimum investment of £5,000 and IFISA investors can target a fixed rate of 3.54 per cent, assuming you reinvest all interest. There is also a tracker rate that follows LIBOR, priced at 3.25 per cent as of 23 January. The IFISA is flexible and Landbay also offers a secondary market.
LandlordInvest enables investors to fund buy-to-let mortgages and bridging loans, offering annual returns ranging between five and 12 per cent. This flexible IFISA has a minimum investment of £100 and there are no fees.
Octopus Choice launched its IFISA in August 2017, targeting returns of four per cent per year. Octopus Choice offers property-backed loans to investors, which are underwritten another lender under the Octopus umbrella, Octopus Property. The minimum investment is £10. It is not a flexible ISA, meaning that any money you withdraw will still count towards your annual ISA allowance.
Proplend provides commercial property loans. Investors can manually select their loans or choose the auto-invest option, with interest rates ranging between five and 12 per cent. The tax wrapper is flexible and the minimum investment is £1,000, with no management or transfer fees.
Read more: Proplend hits £50m lending milestone
Relendex provides funding for commercial property investments, developments and bridging loans, offering returns of up to 10 per cent. Investors can opt for the self-select or auto-invest option, with a minimum investment of £500 or £2,500 respectively. It is not a flexible wrapper, which Relendex says helps them to keep the product cost-free. There is a secondary market where you can sell loans if needed.