Project Complete: McCrorie Place, Kilbarchan

At Sourced Capital, we’ve been working hard over the past couple of months. We’ve had a number of new projects launch on our platform throughout these truly testing times. In this blog , we’ll be taking a look at one of our projects, McCrorie Place, and providing you with an update of the key details that you need to know.

The McCrorie Place project launched in September 2019. The borrowers were looking for a raise of £182,000 for the conversion of this property. The plan was to flip the property once renovated. There was some work that needed to be completed on the property, as there was visible water damage throughout.

Situated in the heart of Kilbarchan, the property was a 4-bedroom detached house spread over two floors, which included a lounge, kitchen, dining room, bathroom, and 4 bedrooms.

The local area had seen strong capital growth with healthy valuations on 4-bed properties. Once the property had been refurbished, it would become a perfect family home due to its size.

After Sourced Capital had reviewed this project, we knew that it was the perfect addition to our platform. Listed in September for investment with a return for investors of 11%, the investment of £182,000 was funded quickly. With demand in the local area for this type of property, investors flocked to invest in this project.

After months of hard work, Sourced Capital is pleased to announce that all investments into the McCrorie Place project have now been repaid in full, along with an average interest of 11.3%.

Sourced Capital has repaid £202,566 to investors, after a total of £182,200 was raised, a healthy return for investors in such a short period of time.

New Project: Nelson Road, Clacton-on-Sea

But what’s next for Sourced Capital? Well, we’ve had a number of projects launch on our platform recently, one of which is our current project based on Nelson Road, Clacton-on-Sea.

This is an exciting opportunity to invest in a new build development. The plot of land will be purchased with planning permission in place for the build of 6 properties in a quiet residential area based on Nelson Road in Clacton-on-Sea.

The borrowers are looking to raise £1,103,000 for the purchase and build of 6 new, 3 bed townhouses. To coincide with the raise, the borrowers will also be contributing £337,250 of their own cash towards the purchase price of £504,000.

Investors of this project, get a first legal charge on the site. There is additional land, next to this plot, which the borrowers are allowing investors to also have the first legal charge on also.

The exit plan for this project is to sell the properties, within a 14 month period, generating an estimated profit margin of 39%.

The area of Clacton-on-Sea is the largest town on the Essex Sunshine Coast. People frequently relocate there from London, as well as from many other parts of the UK, due to its coastal setting. Clacton-on-Sea is also popular among day-trippers due to the fact that it’s only an hour away from London.

The plot of land on Nelson Road is just a short walk from the Town Centre. Local amenities and a train station are a short 5-minute drive or a 15-minute walk. Clacton’s clean beaches are at the end of Nelson Road and it’s just a few minutes’ walk to the local hospital.

Clacton-on-Sea has seen a steady incline in housing prices over the past 5 years, totalling an average capital growth of 8%.

If you’d like to find out more about the Nelson Road project, download the Project Report for full details. Additionally, you can get in touch with the Team at capital@sourced.co, or, you can fill out this contact form.

*Capital at risk. No FSCS protection. Investment is only suitable for sophisticated and high net worth investors. Past returns are not a guide to future returns.

Calls for ISA extension as deadline looms

Peer to peer lending platform, Sourced Capital, has called for a delay to April’s ISA deadline due to the impact of the Coronavirus to allow those investing via an Innovative Finance, Cash or Stocks and Shares ISA to make the most of their tax-free allowance.

Sourced Capital, also looked at the returns of the Cash, Stocks and Shares and Innovative Finance ISA over the last year and whether or not it’s worth investing before the 5th April’s midnight deadline.

As it stands, savvy savers have until midnight on the 5th April to make the most of their tax-free ISA and pay in up to the limit of £20,000. Failure to do so will see them lose any unused allowance for this tax year. However, with the financial difficulty caused by the spread of the Coronavirus, Sourced Capital believes the deadline should be extended to October, to allow those investing via an ISA to maximise the allowed limit once they are more financially stable.

Any UK resident over the age of 16 is able to make the most of an ISA and they can either invest through the more straightforward Cash ISA, or a Stocks and Shares ISA which carries more risk but provide a better return on average. You can also save up to £20,000 tax-free via a combination of both a Cash and Stocks and Shares ISA if you please, although there are other options such as the Innovative Finance ISA which sits as a separate vehicle altogether and can yield a much better return, although again they do carry greater risk.

The latest data shows that in the tax year 2017-2018, £39.8bn was deposited into Cash ISAs, a 1.6% increase on the previous year. During the same year, £28.7bn was deposited into Stocks and Shares ISAs, a 28.6% uplift on the previous year.

But which has been the most lucrative for savers?

In the 2017-2018 tax year, the average saver deposited £5,115 into a cash ISA with the average rate of 1.31% bringing a return of £67. For those that deposited their full £20,000 allowance, the same rate of return would have resulted in an additional £262.

In the same period, the average saver deposited £10,124 into Stocks and Shares ISAs with an average rate of return hitting 4.8%. This brought the average saver a return of £486, but those depositing their whole £20,000 allowance would have seen a return of £960.

However, there has been an increase in the popularity for other saving investment vehicles with the Innovative Finance ISA becoming particularly popular.

With an average rate of return sitting at 10% and the average investor depositing £6,409, the Innovative Finance ISA returned £641 on average in 2017-2018. A £20,000 investment would have seen a return of £2,000. Past performance may not be indicative of future performance.

Stephen Moss, founder and MD of Sourced Capital, commented:

“There are just a few days left if you do want to make the most of your tax-free ISA allowance for this financial year, but with many of us now struggling to work due to the sanctions imposed because of the Coronavirus, we believe the Government should delay this deadline until October at least.

Doing so would hopefully allow for the dust to settle and for the many who have seen their income dwindle, to return to work and accumulate the savings necessary to maximise the benefit of their chosen ISA scheme.

With a second reduction in interest rates to a low of 0.1%, this is even more vital as the returns available were already slim, to say the least.”

What is an IFISA?

The IFISA is a category of ISA which was launched in April 2016 for UK taxpayers and can provide returns as high as 10-12% an annum, although capital is of, course, at risk and IFISAs do not have FSCS protection. Previously, there have been two main types of ISA: Cash ISAs and Stocks and Shares ISAs.

Similar to these ISAs, the IFISA allows you to invest money without paying personal income tax*. This enables you to invest your money into the growing peer to peer market.

Like cash ISAs Each tax year, you get an allowance of up to £20,000 to put into IFISAs which you can distribute across your different ISAs should you wish to. In addition, you can transfer your previous year’s ISA investments into your IFISA.

Sourced Capital are asking the government to extend the ISA deadline from 5th April to 1st October to enable those that would otherwise invest, time to do so rather than missing out on their allowance this year, given the current CoronaVirus Crisis.

  • Individuals should be aware that tax treatment depends on individual circumstances and are subject to change.

Please sign, share and support our campaign.

https://www.change.org/p/government-extend-the-isa-deadline-to-1st-october

Classic cars, coins and fine wine have been the best investments in the last five years

Just a day after posting its biggest one day decline, the price of gold skyrocketed last week as scares over the spread of the coronavirus caused a ‘flight into safe havens’ by many investors.

However, the latest research by the peer to peer lending platform, Sourced Capital, has found that over the last five years, gold has been one of the worst investments one can make.

Sourced Capital looked at the average annual rate of return across a number of traditional investment options over the last five years, which are topping the table as the most lucrative and what return you would have gained from a £1,000 investment.

The research shows that classic cars have been the best investment in the last five years, with an average annual rate of return hitting 16% meaning a £1,000 investment would see a return of £1,136 today in addition to your original investment.

While gold hasn’t fared so well, investing in rare coins has been a pretty safe bet, returning an additional £1,033 on a £1,000 investment with the average annual rate of return sitting at 15%.

Fine wines rank as the third most lucrative investment returning an average of 13% each year or £859 on your investment.

While prime bricks and mortar haven’t performed well with an average annual RoR of just 6%, investing through a peer to peer lending platform such as Souced has proved a much better option, with an annual RoR of 10% returning £611 in addition to a £1,000 investment.

Vintage watches (8%) jewellery (7%) and good old fashioned stamps (7%) have proved the next safest bet, while the FTSE 100 (6%) sits on par with prime property investment and as previously mentioned, gold brings up the rear with an average annual RoR of just 5% over the last five years.

Stephen Moss, founder and MD of Sourced Capital, commented:

“The recent surge in the popularity of gold is likely to be short-lived and although it can bring some huge returns, these more volatile options are also prone to huge losses.

When it comes to the more stable investment options, the classics such as cars, rare coins and fine wine seem to bring the most consistent returns on a long term basis. That said, while bricks and mortar has traditionally been as safe as houses, a Brexit inspired market slowdown has even seen that drop down the table.

However, we’ve also seen investment in the property sector evolve as a result with a greater preference to invest via peer to peer platforms and while capital is always at risk, new-age options such as the Innovative Finance ISA have seen many investors average 10% annually through property investment, with some achieving returns as high as 12%.”

What is an IFISA?

The IFISA is a category of ISA which was launched in April 2016 for UK taxpayers and can provide returns as high as 10-12% an annum, although capital is of, course, at risk. Previously, there have been two main types of ISA: Cash ISAs and Stocks and Shares ISAs.

Similar to these ISAs, the IFISA allows you to invest money without paying personal income tax. This enables you to invest your money into the growing peer to peer market.

Like cash ISAs Each tax year, you get an allowance of up to £20,000 to put into IFISAs which you can distribute across your different ISAs should you wish to. In addition, you can transfer your previous year’s ISA investments into your IFISA. Unlike cash ISAs, funds held in an IF ISA are not protected by the FSCS.

One should keep in mind that tax treatment depends on the individual circumstances of each client and may be subject to change in future.