CapitalStackers Blog

CapitalStackers Limited is authorised and regulated by the Financial Conduct Authority (FRN 722549). Registered in England (Co. No. 7361691). Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other crowdfunding platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.

Published 23rd February 2016 by CapitalStackers

How safe is your pension fund right now?

How is stock market volatility affecting its value?

For decades, the UK stock market was seen as the standard way to make a steady return. Right up until the mid 1990s (October 1987’s Black Monday notwithstanding).

Since then, however, it’s been a rollercoaster ride, to say the least. With falls that make Black Monday look like a grey Tuesday.

So if your pension is invested in it (in common with the vast majority of the British public), then it could be costing you thousands of pounds right now. Which could, of course, seriously affect your cumulative total when you come to retire.

Because early suggestions show that 2016 is shaping up to be a bad year for British pension holders. In fact, some pensions funds may actually be falling in value.

This is largely due to China’s internal economic struggles having a knock-on effect on the rest of the world.

The graph below shows how much the FTSE has changed since 1984. If you’ve been following recent performance, heart in mouth, worried about the possibility of the next tumble, then isn’t it worth considering less capricious ways to invest your money?

Start reviewing your pension before March 2016

Last year, we saw some serious changes to the way pensions work here in the UK. The most notable of which is the right to draw your full pension fund from the age of 55 – with 25% being tax-free.

However, not all of the changes will benefit all of us. In fact, with the government keen to squeeze us for every last penny, it’s widely expected that further changes will be announced in the March 2016 budget. Changes that are unlikely to make pensions any more attractive.

Let’s look at two of the most detrimental revisions from the 2015 budget:

Reducing the maximum that can be held in pensions without being liable for tax
Slashing the amount that can be saved in a pension for those who pay the highest tax

These two changes alone ought to be enough to make you take stock. Are your pensions really working as hard as they can?

So if you’re:

Frustrated watching your fund constantly rise and fall with the markets
Unable to predict what it may or may not be worth in the future
Unsure whether or not it will provide you with the retirement income you need

Then you should be seriously considering alternatives.

As part of your pension review, you should find out how it’s been performing over the last few years. If you find it’s not growing at least 5% (and realistically, a good deal more than that), you should seriously think about transferring to a SIPP – a pension plan that puts you in full control.

Swap to a SIPP

A SIPP is a self-invested pension plan, which enables you to select and manage how your pension is invested.

A SIPP enables you to place your pension through more innovative investment vehicles, such as the peer-to-peer property lending platform, CapitalStackers.

Why should you invest your pension through CapitalStackers?

Because CapitalStackers is focused entirely on real estate. The people and businesses you lend to on this platform will only ever be experienced property investors or property developers – and your funds are secured on their property assets.

What’s more, far from being an alternative to bank finance, it actually enables developers and investors to work with the banks, building on their support, so that investors can lend directly to pre-vetted borrowers and create a mutually-beneficial solution.

Now, although investing with CapitalStackers isn’t without risk, it does make understanding risk clear and simple, with no-nonsense, straight talking presentations that give you all the information you need. And it gives you the means to monitor your investments. You can even choose your preferred management team, location, property type and level of risk. And, if necessary, you can choose to exit your investment through our marketplace.

Best of all, by investing through your pension fund you don’t have to pay tax on the interest your CapitalStackers investment generates.

Final thoughts

So, whatever your stage of life, you should seriously consider investing through CapitalStackers via a SIPP. Where else can you choose your own risk and reward, and earn a tax-free return of between 5% and 20%? Click here if you want to know more.

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invest tax-free pension fund SIPP stock market

Published 26th November 2015 by CapitalStackers

Development at Foss Place, York by Norstar Limited

CapitalStackers – the P2P property development lending platform – has raised a £2.25m loan to fund the purchase and development of a 24-unit residential block in York.

The entire funding was completed in just 14 days from engagement to the full loan being raised, and the development by Norstar Limited is projected to have a Gross Development Value of £3.2m. Investor returns are pegged at between 8.5% and 23% p.a.

Steve Robson of CapitalStackers commented:

“This is a huge milestone in our development and singles us out from the competition as being able to perform swiftly and professionally when circumstances dictate. Working closely with our investors and professional advisers to deliver the whole package within an incredibly tight timescale is a fantastic achievement.”

CapitalStackers allows a wide range of investors to get involved with large commercial building projects, from housing to offices– schemes that would otherwise be out of their reach except through REITs or unit trusts. The idea is to plug the funding gap between typical bank debt and the developer’s equity. CapitalStackers invites P2P investors to take a stake at a risk and reward level they choose, with typical returns of between 5% and 20% p.a. on completion of the project, around 12-24 months later. With the minimum investment being just £5,000 fully secured on the property being funded and on the back of high quality due diligence, this is proving to be a very popular investment vehicle.

This is the latest in a string of new projects funded by CapitalStackers, who are currently inviting investment in an exciting new residential development in Birmingham. The loan sought is £1.9m and returns will be between 7.7% and 17.2% p.a. over a 15 month term.

The development address is: Foss Place, Foss Islands Road, York, YO31 7UJ.

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p2p Peer-to-Peer property finance

Published 19th October 2015 by CapitalStackers

Sylvia Bowden Joins CapitalStackers

CapitalStackers, the exciting new peer-to-peer property lending platform, has lured senior industry figure Sylvia Bowden to join its ranks.

Originally an investment fund manager, then a chartered surveyor running York’s second largest practice, Sylvia rose to prominence after switching to the banking industry and spending more than a decade structuring bank debt for property investments and developments. Her robust, cashflow-led approach to risk assessment and risk management have been the hallmark of her deals and make her a perfect company fit.

CapitalStackers’ Managing Director, Steve Robson, said, “I’m delighted Sylvia is joining us. The appointment affirms CapitalStackers’ growing presence in property finance”.

Sylvia said her decision to join CapitalStackers was driven by “a desire to make a difference”.

“Real estate finance has been in the doldrums for too long and initiatives like CapitalStackers will be the catalyst to get the country building again. I’m really looking forward to writing new deals” she said.

Nigel Bennett, Chairman, said, “This is another step forward for the company and its plans to improve the funding options for property borrowers and provide attractive secured returns for investors who lend to them. ”

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lending platform Peer-to-Peer Sylvia Bowden

Published 1st July 2015 by CapitalStackers

Peer to Peer lending benefits from new generous tax rules

There are a raft of tax provisions that are going to make individuals who lend money pay less tax, including:

From 6^th April 2015 a £5,000 zero % band for basic rate taxpayers.

From 6^th April 2016 £1,000 interest tax free for basic rate taxpayers (£500 for higher rate tax payers).

It is anticipated Peer to Peer lending will be allowed to be held in ISAs in the Government’s second 2015 budget next week.

Therefore, there is potential for an extra £6,000 per annum tax free income per individual.

Philip Eagle, Tax Director, Hallidays Limited

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ISA Peer-to-Peer

Published 16th October 2014 by CapitalStackers

Peer-to-Peer Lending That Builds on Banks!

Hundreds of UK property developers with attractive products are crying out for investors to plug the gap left by the banking crisis.

Big deal, you say. But possibly too big.

The hefty sums needed to fund a new factory or office block are simply out of the reach of most investors unless you go through REITs or collectives. But then you lose control and the thrill of involvement.

So for most of us, the grim reality of investing in property is slogging away at small residential stuff, shops and industrial units – with the attendant headaches of borrowing from banks, PGs and management headaches – not to mention the equity risk.

But a new service launches this week that might give you a considerable leg up into the headier heights of property Nirvana.

It’s the brainchild of two experienced former North-West bank managers who specialised for decades in the property industry. It’s called CapitalStackers, and it’s a brilliant solution to the small investor’s dilemma.

Very often, banks will lend 55-65% towards the cost of a viable project, but no more. The developer will obviously have some equity of his own, so it just needs someone to plug the gap between the two.

Obviously, that in itself is too big a leap for most investors. But here’s the clever bit.

Simply put, CapitalStackers “stacks” private funding on top of bank lending in order to reach the level required to finance a property scheme – in other words, it actually works with active banks rather than pushing them out.

Investors can then choose where in the “stack” of finance they’d like to invest – picking their own level of risk and return, which management team they prefer, which projects they’d like to get involved with – and they can even spread their risk at different levels within the same project.

It typically brings in returns of between 5% and 20% – and one of its most attractive features is that the investment is secured against the underlying property assets being financed.

It’s certain to be of interest to people looking to invest through their pension funds at a sensible risk/reward ratio. In addition to the bank’s due diligence process to get the project off the ground in the first place, the CapitalStackers team perform comprehensive risk analysis and ongoing monitoring of your investment.

Which means investors benefit in the following ways: (a) the lending risk analysis process is doubled up; (b) phased funding of ongoing construction is more suited to a bank than individual investors whose cash goes in first and gets an immediate return; (c) senior debt gearing means you can use your cash to access more or larger deals; and, (d) cheaper senior debt enhances the return on your investment.

So for the investor seeking more attractive risk-weighted rewards, this could be the future of property investing.

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Peer-to-Peer property finance

Published 7th May 2014 by CapitalStackers

CapitalStackers recruit new director as first two deals funded

CapitalStackers – the hottest new concept in peer-to-peer lending – has added considerable weight to its board with the recruitment of new director Tony Goldrick.

The online platform specialises in property investment and development deals secured by commercial and residential real estate, so Tony’s considerable experience in both the banking and property sectors enhances the company’s powerful presence in this market.

After 30 years working for Royal Bank of Scotland, Tony spent the second half of his career in real estate finance – having established the bank’s first dedicated regional property lending team in Manchester in 1999. The success of the team led to expansion across the north of England, and at its height Tony and his team were managing more than £5.5bn of lending.

Tony is a well-known face in the real estate sector, with a wide range of contacts with developers, investors, property agents, banks, and other professionals.

Since leaving RBS in 2012, he has been advising a number of large regional property development and investment companies, and will continue in this role, complementing his involvement with CapitalStackers.

“This is an exciting addition to the board” said Steve Robson, CapitalStackers’ Managing Director.

“His experience and knowledge of real estate really complement our existing team and I look forward to working closely with Tony to push the business forward”.

As part of the pre-launch activities Steve Robson, Managing Director of CapitalStackers presented his new model at the highly successful Great British Private Investor Summit in London in March – unveiling an inventive template which augments traditional bank lending, allowing private and corporate investors to tailor their risk and return profile.

It’s likely to be a particularly attractive vehicle for investors, given that all loans are secured by commercial and residential real estate. The North West based firm has gained a lot of attention in this embryonic, but fast growing and dynamic sector.

CapitalStackers aims to be the first-choice destination for investors looking to finance property investments and development schemes. It’s the ideal platform for high net worth individuals or sophisticated investors with a minimum of £5,000 to invest, looking to achieve a better deal than the more traditional investment routes offer.

It is supported financially and professionally by Hallidays Ltd – a firm of accountants with an admirable reputation. CapitalStackers and Hallidays already have a successful track record in changing the world of property finance and information technology. In 1999 they set up pi-FRAME Ltd, a specialist software house which sells real estate lending risk analysis software to banks and property lending boutiques.

The CapitalStackers team have huge property lending experience and can introduce investors to well-structured and secured real estate lending deals, setting up relationships with experienced property entrepreneurs and giving attractive risk-weighted rewards.

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commercial real estate investment Peer-to-Peer RBS Tony Goldrick

Published 13th March 2014 by CapitalStackers

CapitalStackers impress at Great British Private Investor Summit

Steve Robson, Managing Director of CapitalStackers presented to a packed audience at the highly successful Great British Private Investor Summit in London yesterday, organised by Angel News. Some 250 high net worth and angel investors were in the audience listening to pitches from a range of crowdfunding and peer to peer lending platforms.

Following the event, Steve said:

“We are delighted with the response from investors to the business model and really encouraged by their level of interest in the platform. The completion of two deals marks an important step for us and we now look forward to the formal launch to enable us to engage with the wider investment community.”

At a recent pre-launch event hosted by Hallidays LLP, CapitalStackers generated enough interest to complete its first two deals. The CapitalStackers business model seeks to engage with banks and allow investors to choose their preferred risk and return profile. That, and the fact that all deals are secured by commercial and residential real estate, made the Stockport based firm stand out in this embryonic but fast growing and dynamic sector.

CapitalStackers and its website aim to be the destination of choice for investors looking to finance property investments and development schemes. These will be high net worth individuals or sophisticated investors with a minimum of £5,000 to invest and looking to achieve a better deal than through some of the more traditional investment routes.

It is supported financially and professionally by Hallidays LLP, a firm of accountants with an excellent reputation. This is not the first time these people have come together in the world of property finance and information technology. In 1999 they set up pi-FRAME Ltd, a small and specialised software house which sells real estate lending risk analysis software to banks and property lending boutiques.

At the recent pre-launch event, Steve Robson commented:

“Real estate lending has spent long enough in the doldrums. This initiative and others like it will go a long way to repairing the property finance market. Not only will real estate borrowers benefit from improved liquidity, so also will investors through achieving better returns. We are genuinely excited about the future.”

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