Investment platform Propio.com launches ‘The Property ISA’

Property investment platform, Propio.com is set to launch a property ISA ahead of the 5 April deadline.

‘The Property ISA’ from Propio.com, which will invest money purely in property-backed loans, is part of a new breed of innovative finance ISAs (IFISAs) allowing people to invest their ISA funds into alternatives that sit outside traditional asset classes like equities, bonds and cash.

Since ISAs allow people to invest up to £20,000 annually and to pay no tax on any profit made, they can be an extremely tax-efficient way of investing money.

Tom Buttress, co-founder at Propio.com, said: “People are sick of earning peanuts on cash ISAs. IFISAs, like ours, offer the potential for better returns by opening up access to alternative asset classes. Some people are scared by the volatility of stocks, and while investing in small cap companies can generate strong returns, property is largely seen as more defensive and lower risk, because investments can be backed by real assets. Our Property ISA is designed to sit in between cash and equities, offering better returns than a basic savings ISAs but without the unpredictability of equities.”

Propio allows investors to select from one of three ISAs based on their risk appetite – cautious, balanced or adventurous – offering fixed-rate returns of up to 7 per cent per year. Investor money is then spread across a range of property-backed loans throughout the UK.

Tom Buttress, Propio.com co-founder, said: “Unlike buy-to-let, with Propio you’re not actually buying property but investing into a loan secured against it – a bit like a mortgage but over much shorter time scales. This means that you’re less exposed to the fluctuations of the property market, making it a way of gaining access to the asset class without all the risks and hassle of ownership.”

Money invested through Propio.com is used to provide loans to property professionals, helping them build and refurbish properties. Each loan is carefully selected by Propio’s in-house team of property experts and underwriters.

Furthermore, Propio investors can do it all on their phone. In just a few clicks investors can sign up, invest, keep an eye on their returns and then withdraw any money they’ve made. Investors can get started with just £100, and of course, as it’s an ISA, can invest up to £20,000 per year tax-free.

Buttress added: “We know that traditional property investing requires time, money and patience, making it inaccessible to most people. So, we’ve come up with a smarter way for everyday people to access better, more stable property returns whether you’re on the bus, in the gym or at the beach. One that works for a new generation of investors and helps build much needed homes for people in the UK at the same time.”