However, the new policy has done little to help second steppers who are trying to move up the ladder. With dwindling returns from cash ISAs across the board and the alternative being volatile equity investments, these buyers may be wondering how they can best take advantage of ISAs to save for their next move.
London Central Portfolio have therefore announced that their fourth property investment vehicle, London Central Apartments II (LCA II), is accepting ISA investments until the end of April.
Naomi Heaton, CEO of LCP, comments:
“LCA II is all-inclusive for both first time buyers and second steppers, providing a ‘way in’ to the top performing and most robust residential asset class. Most investors are more than aware of the strong and consistent returns that can be achieved from Central London residential and the ISA eligibility of the LCA II means that any buyer who wants to benefit from property price rises and save for their deposit can invest in Central London and take their profits tax free.”
Regulated by the Jersey Financial Services Commission and listed on the Channel Islands Securities Exchange, the mandate for LCA II follows the proven and successful model of LCP’s previous three property investment companies. It will acquire a diversified portfolio of properties in the prime postcodes surrounding Hyde Park, which will then be refurbished and interior designed to add value and target the thriving Private Rented Sector. LCA II is targeting returns of 12% per annum IRR.
With the returns on offer, new investors will aim to nearly double their original investment over the five year hold.
Heaton added:
“Unlike the Help-To-Buy ISA which will not be available until the autumn, LCA II is open for subscriptions immediately and has already acquired three prime properties in Notting Hill, Paddington and Victoria. With the end of the financial year approaching, any saver can actually invest both their current ISA allowance and next year’s ISA allowance, before the investment vehicle closes at the end of April.”
Killik & Co LLP will accept the investment via their NISA and ISA wrappers, on a non-advised basis.
LCA II has also been designed to be SIPP eligible helping pension savers build a nest egg.
