The Evolution of Property Investing

The UK Alternative Finance industry is currently valued at £2.6bn. Property crowdfunding is one of its rising stars growing an impressive 200% in 2017. However external pressures are converging forcing a shift on how property can work as an effective investment asset. But with the right approach, there are still strong returns to be found.

As one of the major asset classes alongside cash, shares and bonds, property has typically delivered strong income, diversification and yields relative to other investments. However, the world of property investment is fast-moving and ever-changing, forcing sophisticated investors to rethink paths to profitability.

Identifying the pitfalls in traditional property investment models can help to synthesise an alternative approach.

Pinpointing the pitfalls of Buy-to-let

Probably the best-known approach to property investing is buy-to-let. For over two decades, buying a property to rent out was viewed as a relatively straightforward investment model, with landlords reaping the benefits of both capital growth and significant monthly income.

However, the buy-to-let landscape has changed considerably in recent years, with landlords hit by a range of additional costs and new regulation, including:

  • The 2016 introduction of a 3% stamp duty surcharge on second homes[1]
  • The tapered reduction of mortgage interest tax relief, to the basic rate of 20% for all landlords by 2022
  • Tighter regulation of buy-let-mortgages and stricter eligibility criteria
  • The threat of interest rate increases affecting mortgage affordability

These factors, added to the everyday practicalities and costs of maintaining properties and recruiting and managing tenants, have led many landlords to cut their losses and exit buy-to-let for good.

CCG are at the forefront of building a new approach to property development investing. With investment starting at £39,999 our investors can pick projects that best fit their investment requirements whilst building a diverse property investment portfolio. Concept Capital Group maintain absolute transparency and clarity provided to investors on every aspect of the investment process and on each stage of every property development.

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