Industry Interview: CapitalRise
1) Why is property still a good investment?
Property has always been a good investment as it has a strong historical track record of outperforming other asset classes such as bonds and it is less volatile than stocks and shares. This is particularly true for the prime property market where CapitalRise focuses.
2) What type of property is most popular with investors?
In our experience savvy investors are looking for high quality property assets in locations where there is high demand. However, the higher the quality of the asset and location the higher the minimum investment amount needed. CapitalRise was founded to give investors with as little as £1,000 access to prime real estate investment opportunities that were previously only ever available to the very wealthy or institutions with millions to invest. Our investments fund very fast and are always oversubscribed, for example in our last investment, we raised £1.25 million in less than two working days.
3) How would you describe a typical investor today?
They are people looking to make their money work harder. Prime property investing today has a broad appeal from millennials looking to grow a deposit to get on the property ladder to pre-retirees looking to grow their pension pot and everything in between.
4) Have you encountered a Brexit effect?
Brexit has caused uncertainty which has naturally impacted most investment types. However, we don’t believe our investments will be impacted by Brexit as we are providing secured lending at typically 66% loan to value ratio, which means that property prices would need to drop by a further 34% for investors’ funds to be at risk, which most people would consider a highly unlikely scenario.
5) How is investing with you different?
We pride ourselves in the quality and experience of our underwriting team who carefully select the investment opportunities we offer to our investors. Our focus on prime property enables us to offer strong risk adjusted returns between 8% and 12% which can be tax free if you invest using the CapitalRise ISA and there are no fees to invest. Members can simply sign up online in a matter of minutes and once registered they will receive early access to our investment opportunities.
Uma Rajah is chief executive officer of Capital Rise
Investors are urged to seek independent professional advice when considering an investment. Before investing with CapitalRise, you will need to confirm that you have read and understood the risk factors. Investment performance is not covered by the Financial Services Compensation Scheme. ISA Rules apply. Tax treatment is dependent on individual circumstances and may be subject to change in the future.
CapitalRise Finance Ltd is an Appointed Representative of Gallium Fund Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority, registration number 487176. CapitalRise® is a registered trademark of CapitalRise Finance Ltd, a limited company registered in England and Wales (No. 09571824) with its registered office at Jubilee House, 2 Jubilee Place, London SW3 3TQ.