Simon Morris: Is it time to start placing property funds into ISA investments?
London, UK - While saving rates remain stagnant, many informed investors are looking at the advantages of placing property funds into their ISA investments. This trend is backed up by various property funds who are looking to promote a higher return for ISA holders.
The funds invest into UK property. ISA investors can then expect to be charged around a 1 per cent annual management fee and up to a 6 per cent return (Figures vary between ISA’s).
The maximum initial new ISA allowance is £15,000 and some of these property funds are seeing annual returns of 12 per cent based on projected property growth and rental income. This would mean a tax free pay-out of £12,150 at the end of a five-year term.
This sort of return is unheard of on a cash Nisa. It also gives investors a chance to take part in the London property boom without having to hold bricks and mortar stock.
Simon Morris adds caution to these figures in that “savers should only be looking to sign up to regulated financial products and seek advice from an Independent Financial Advisor.”
According to HMRC, a record amount of ISA cash has flowed into stocks and shares in the last year as people wanted to avoid the derisory returns that cash offers.
Many investors are aware of the strong returns that can be made in the Central London property market. If you add this to the tax saving advantages of ISAs, it’s no wonder that a new generation of investors are looking at property funds.
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About Simon Morris
Simon Morris is a London-based property expert who uses his specialist knowledge of the commercial property sector, to advise UK property investment funds on how to maximise profitability.
For more information on property investments please read Simon’s Guide to Property Investment Options.
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