George Osborne\u2019s recent introduction of a second home tax has hit buy to let investors hard \u2013 but providers of peer-to-peer (P2P) property companies are urging would-be landlords that, with the right approach, they can still make lucrative investments without being zapped by the new charge.<\/p>\n
The P2P concept is simple \u2013 investors can take out mortgages and property loans in return for interest, using highly specialised versions of these traditional platforms.<\/p>\n
Loans are typically secured against a UK property, and providers will possess a property if a borrower defaults on payments.<\/p>\n
P2P providers are arguing that this method allows would-be landlords to sidestep Stamp Duty, Capital Gains Tax and complaints from problem tenants \u2013 and generates returns of around 5 per cent.<\/p>\n
Paul Clampin, chief lending Officer of one provider, Landbay, said: “For those who still want exposure to the growing private rented sector, but without the hassle and costs of becoming a landlord themselves, Landbay offers a simple platform to invest in buy-to-let mortgages.<\/p>\n
“Research shows that we are at the lowest risk spectrum of the peer-to-peer investment sector.”<\/p>\n
Ian Thomas, co-founder and director of another provider, LendInvest, said: \u201cInvesting in property with LendInvest cuts out many of the negatives of being a landlord.<\/p>\n
“You don\u2019t have to worry about Stamp Duty, Capital Gains Tax, or gaps in tenancies. And you’ll never get a call from a tenant in the middle of the night about a broken down boiler.<\/p>\n
\u201cInstead you do get to enjoy a great, consistent return, and can diversify across a range of different properties much more cheaply than if you wanted to build your own traditional property portfolio.”<\/p>\n","protected":false},"excerpt":{"rendered":"
George Osborne\u2019s recent introduction of a second home tax has hit buy to let investors hard \u2013 but providers of peer-to-peer (P2P) property companies are urging would-be landlords that, with the right approach, they can still make lucrative investments without being zapped by the new charge.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1276"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1276"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1276\/revisions"}],"predecessor-version":[{"id":1277,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1276\/revisions\/1277"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}