personal finance

Asset management is different to peer-to-peer and crowdfunding


This sounds similar to peer-to-peer (P2P) lenders and crowdfunding platforms but British Pearl has adopted a different approach that it believes will reduce the risks. 

Beat the crowd 

Chief strategy officer Dipankar Shewaram said it is an asset manager, allowing investors to buy units or fractions of individual properties with a minimum investment of just £100.

“This gives you exposure to the British housing market without the effort of becoming a buy-to-let landlord. our experienced investment and property team does the hard work for you.” 

He said the concept sounds similar to P2P and crowdfunding but British Pearl’s asset management model may help the investor to avoid potential downsides. 

With P2P, savers lend their money directly to individuals or businesses, with the risk that they may default.

“This model is yet to be tested properly by an economic downturn,” Shewaram said. 

Crowdfunding platforms let investors buy a direct stake in growing businesses.

“However, it does not have a long-term stake in how the business performs, whereas British Pearl does.” 

Shewaram said it manages the property on behalf of investors, refurbishing where necessary, collecting rent and choosing the most profitable moment to sell.

“We typically hold each property for between two and five years, depending on market conditions, with a resale market providing additional opportunities to exit” 

Income and growth

Investors with British Pearl can choose to buy shares in a property offering a targeted return of up to 9.5 per cent a year from rental income plus a share in annual capital gains. 

These returns are projected and depend on rental income and property market performance. Alternatively, you can lend your money and get income of 4.4 per 

cent a year tax free inside your £20,000 a year Isa allowance. 

RISK

Your capital may be at risk if property falls in value. All income is variable and will depend on tenant demand and rent levels. 

Investing in property involves risk. the value of investments can go down as well as up, and one may not get back the amount invested. Past performance is not a reliable indicator of future performance. Isa rules apply. Tax treatment depends on individual circumstances and may change in the future. British Pearl is authorised and regulated by the Financial Conduct Authority. Before making an investment decision, please seek the advice of an independent financial adviser. 

This article was produced in partnership with British Pearl for express.co.uk



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