You may well have seen recent headlines about the ‘death of buy-to-let’ and landlords looking to exit the market.
It’s easy to see why the death of buy-to-let is such a hot topic. Investing in the UK property market has generated large amounts of wealth in recent years — there are as many as 2.5 million landlords with £1.4 trillion invested in buy-to-let.
Buy-to-let has always had its drawbacks, from the significant sums required to purchase an individual property, to the hassles of tenant management and the concentration risk of having a small number of properties.
Recently, the UK Government has placed additional charges on buy-to-let landlords, meaning investments are even less tax-efficient — many investors will find their direct property investments are not worth the hassle and risks.
With more and more people evaluating whether buy-to-let makes sense for them, Bricklane offers a simpler way to invest. The product is designed to pass on the benefits of investing in property, while avoiding the hassle, inflexibility and tax-inefficiency of buy-to-let.
For existing buy-to-let landlords who are fed up with the hassle or tax-inefficiency of managing a buy-to-let themselves, Bricklane offers several options.
You could swap your property for shares in the funds. If your property meets our investment criteria, Bricklane funds could buy your property, in exchange for investments in your ISA, pension or standard account. If your buy-to-let properties are held in a company, you may be able to benefit from further tax advantages on top if you sell us your property.
If you are holding your money in a Cash ISA and earning an average return of 1.35%, then you’re not earning enough to keep up with inflation at 2.3%. This means your money is losing value over time. (Sources: Bank of England and Office for National Statistics)
Bricklane offers the benefits of investing in property, combined with the tax-efficiency of investing through the ISA wrapper. Many investors value stable ‘bricks and mortar’ returns from capital growth and rental income, combined with the ability to choose where they are invested.
Past performance of both the London and Regional Capitals funds is strong with, both returning 6.7%+ annualised since launch. (Note: past performance is not a guide to future returns)
When investing through an ISA, there is no personal tax to pay on property gains or income. You can invest up to £20,000 each year, and you can easily transfer existing ISAs from elsewhere to Bricklane.
The choice between investing in property and investing in a pension has been well-covered over the years.
With Bricklane, investors can finally get the best of both — access to bricks and mortar returns from capital growth and rental income, with the tax benefits of a pension.
Investment in residential property can provide a good way to diversify your pension portfolio, and is a hassle-free and tax-efficient alternative to buy-to-let investment. If you are not using your annual pensions allowance, you could benefit from government contributions of up to 45% on top of your investment, with potential Inheritance Tax benefits on top.
By investing your chosen amount in UK residential property portfolios with Bricklane, you can fine-tune your exposure to suit your goals and risk-profile, without personal and corporation tax on gains or income.
Tell us more about your portfolio and a dedicated account manager will send you a free guide to investing with BricklaneContact us As with all investing, your capital is at risk. See further details below.