How to grow your own property portfolio without being a landlord

Property has long been considered as a safer financial investment and unsecured loans to renovate and refurbish property are on the increase. There has been somewhat of a ‘buy to let’ boom in the UK in recent years, as people consider it as an additional income stream and security in retirement.  But tax changes as of April 2016 may see people seeking alternative types of property investment, as the Chancellor attacks landlords and those with property portfolios.

Peer to Peer lending has increased massively over the past 5 years, and it now seems that landlords are turning to this type of lending for a fairer and easier way to secure an income from property. LendInvest is a prime example of this. With a huge rate of growth over the last two years, LendInvest is a peer-to-peer lending specialist and has lent more than £500 million in the two and a half years since its formation. Indeed LendInvest currently provide a whopping £22million of finance every month, and in the last 12 months has funded over 1200 new homes.

This type of peer-to-peer property lending, allows the investor the chance to make a good return from property, and it is open to a much wider audience. The minimum investment is only £100, so even the most novice investors could get involved. The interest rates and income levels can be fixed from the very beginning, and of course you don’t need to be a landlord to invest. Thus there are no ‘typical’ landlord issues, no awkward tenants, no worrying about blocked drains or leaky toilets. You can also spread your risk by investing in a number of different properties.

So whilst many buy to let investors now face an increased 3% stamp duty and a cut on mortgage relief from their income, LendInvest quote returns as high as an average 7.3% as of April 2016 when they become ISA eligible, and thus tax free.