Will IFISA investment in property fetch a profitable return?
Since the Innovative Finance ISA [IFISA] launched in 2016/17, the number of individuals choosing to allocate their current £20,000 annual ISA allowance to the product has grown significantly.
This growth is understandable and is predicted to soar, as unlike its cash equivalent, IFISAs enable individual investors to allocate some or all of their annual ISA allowance to peer-to-peer loans, where they can benefit from tax-free returns at potentially more competitive percentages.
But, when choosing to invest in an IFISA, what element of risk should individual investors consider? And, more importantly, what industry sectors might fetch a greater return through peer-to-peer lending?
IFISA INVESTMENTS IN PROPERTY
Despite uncertainly over Brexit and a drip-feed of negative press surrounding high-street retailers, property – both residential and commercial – remains one of the most profitable industry sectors to invest in.
From a residential perspective, development is rife as the UK faces a housing crisis, meaning more developers are grasping the opportunity to construct build-to-rent developments in order to fulfil the demand of the growing private-rented-sector.
Furthermore, commercial developments and resulting commercial units, are providing an excellent potential for return, as a host of retail brands - predominantly food, drink and coffee chains - are booming, where you now struggle to turn a street corner without facing the likes of a Starbucks or Costa.
At Godwin Group, we take the time to review and research sound property development and investment opportunities, and as a result have successfully developed-out a diversified portfolio of residential, commercial and mixed-use property assets, spreading across multiple geographies in the UK.
Key examples of the brands we have and continue to work with include retail giants Lidl, Starbucks, McDonalds and Aldi.
Godwin Capital and now IFISA investment opportunities through Godwin Finance sit behind the fundraising of these developments, enabling the Godwin Group to continue our work in developing commercial units for the UK’s retail giants, whilst providing our individual investors with excellent potential returns, often peaking to 11%.
Andrew Mitchell, Group Investment Director, Godwin Group