The Peer to Peer (p2p) loan for property development specialists Quanta Group, has well surpassed its target raise of £3m with over £3.7m raised in total.
All the monies invested via this Peer to Peer loan are being used to buy and refurbish property with the aim of selling them within a few months. This is markedly different to the majority of other Peer to Peer property products that focus more on the buy-to-let market.
The tax changes that came into force for buy-to-let properties mean Quanta's refurbish-to-sell business model may be even more attractive. Certainly for those investors who have already got on board to lend money for Quanta to buy properties, the Quanta team are looking forward to demonstrating how they add value through renovation work, and then try to sell on at a healthy profit.
Quanta look for houses rather than flats mainly because they tend not to have leasehold agreements which can slow the buying and selling process up with queries and issues. The team also often have ‘hotspots’ in the UK which are current areas where the market is working in their favour.
Quanta has a steady pipeline of properties under consideration for purchase and has bought 24 properties so far with the money raised and sold 15. The money raised is continually reused, with the average time between purchase and sale just 92 days.
There were many benefits to making a Peer to Peer loan investment with Quanta. Aside from the inflation beating 6.8% p.a. return, you could also include this P2P investment in an Innovative Finance ISA, the new third category of ISA launched just six months ago. Crowdstacker’s Peer to Peer investments also count towards the new Personal Savings Allowance whereby you can earn up to £1,000 of interest tax free depending on your personal tax status. Crowdstacker are one of only 3 providers able to currently offer the Innovative Finance ISA.
At Crowdstacker. we concentrate on offering opportunities for investors to lend their money to established and financially sound businesses for rates of return typically around 5-7 per cent. We also take great care when assessing which businesses are allowed to raise money via the Crowdstacker Peer to Peer platform, with strict due diligence procedures and a focus on added security features. For example, lenders in the Quanta product have security on all properties bought with their money, and Quanta is only able to draw down its share of the profits if the cash and assets are more than what is required to repay the lenders.
Karteek Patel, Crowdstacker CEO explains "We are actively seeking to provide people looking for a decent interest rate a viable alternative to more traditional options such as bonds. This isn’t about taking a punt on a start-up or hoping you’re putting money into the next Facebook. Instead it’s about using an alternative platform – the relatively new idea of Peer to Peer lending - combined with more traditional style products. These offer some forms of security and peace of mind because you’re lending your money to experienced management teams who are running viable businesses. Ultimately, therefore, we feel it is more rewarding".