property

My Investments Update June 2022

My Investments Update – June 2022

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Here is my latest monthly update about my investments. You can read my May 2022 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA. This is the largest investment I hold other than my Bestinvest SIPP (personal pension).

As the screenshot below of performance in the year to date shows, my main portfolio is currently valued at £20,512. Last month it stood at £20,799 so, after a roller-coaster month, that is a fall of £287.

Nutmeg Main Portfolio June 2022

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,119 compared with £3,166 last month, a fall of £47

Here is a screen capture showing performance this year.

Nutmeg Smart Alpha June 2022

Obviously the continuing falls are disappointing (though much smaller than last month). As I’ve noted previously on PAS, you do have to expect ups and downs with equity-based investments, and certainly over the last few months there has been no shortage of volatility in world markets. And it’s also worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return of 36.48% (or 62.07% time-weighted).

I should also mention that I selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls over the last two months.

  • If you also have a Nutmeg portfolio and plan to withdraw from it in the next few months, there is certainly a case for switching to a lower risk level right now.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are looking for a home for your annual ISA allowance, based on my experience over the last six years, they are certainly worth considering.

If you haven’t yet seen it, check out also my blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (as mentioned, my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should be) opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

Moving on, my Assetz Exchange investments continue to perform well. Regular readers will know that this is a P2P property investment platform focusing on lower-risk properties (e.g. sheltered housing). I put an initial £100 into this in mid-February 2021 and another £400 in April. In June 2021 I added another £500, bringing my total investment up to £1,000.

Since I opened my account, my AE portfolio has generated £57.24 in revenue from rental and £92.28 in capital growth, a total of £149.52. That’s a decent rate of return on my £1,000 investment and does illustrate the value of P2P property investment for diversifying your portfolio when equity markets are volatile (as at the moment).

I now have investments in 22 different projects and all are performing as expected, generating rental income and – in every case but one – showing a profit on capital. So I am very happy with how this investment has been doing. And it doesn’t hurt that most projects are socially beneficial as well.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

My investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have over £2,150 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question. At present all my Kuflink loans are performing to schedule, though one is showing as ‘pending a status update’. I suspect this may translate to a delay in repayment. We shall see.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. These days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!

  • Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

Obviously a possible drawback with Kuflink and similar platforms is that your money is tied up in bricks and mortar, so not as easily accessible as cash savings or even (to some extent) shares. They do, however, have a secondary market on which you can offer any loan part for sale (as long as the loan in question is performing and not in arrears). Clearly that does depend on someone else wanting to buy it, but my experience has been that any loan parts offered are typically snapped up very quickly. So if an urgent need arises, withdrawing your money (or part of it) is unlikely to be an issue.

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.

  • I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].

As mentioned last time, I invested some more money in European crowdlending platform Nibble last month. On this occasion I invested in their Legal Strategy. The loans in question are in default and facing legal action. Nibble buy these loans at a heavily discounted rate and then seek to recover as much as possible of the money owed. The minimum investment is 10 euro and the minimum period is six months.

The Legal Strategy comes with a deposit-back guarantee. This is a guarantee to return the full investment amount at the end of the investment period and a minimum yield of 9% per annum. The actual yield will depend on how successful recovery efforts prove, so in practice you may end up with a return of anywhere between 9% and 14.5%. All is going well so far, but I will obviously continue to report on this in the months ahead.

One other thing I wanted to mention is that I have just opened an account with online share trading/investment platform eToro. I’ve been planning to do this for a while, with a view to reviewing it on PAS. I’m finding it quite different from other online investment platforms I have used such as Bestinvest.

As well as commission-free share trading, eToro offer a popular copy-trading feature, where you can copy the trades of other successful investors automatically. You can also practise with a virtual portfolio of $100,000. I put some of this into Platinum on the eToro commodities market and initially its value soared. But then it went right down again. So I am not the investment genius I thought I was at first 😀 It’s all very interesting, though. If you’d like to check out eToro for yourself, here’s an invitation link [affiliate]. And keep an eye open for my full review in due course.

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Moving on, I have two more articles on the always-excellent Mouthy Money website. The first concerns Two Important State Benefits Many Older People Are Missing Out On. And the second is on the subject Could You Make Money as a Blogger? I have been blogging for over twenty years now, initially about freelance writing and now about personal finance. So I had plenty to talk about in this article!

  • Incidentally, Mouthy Money currently have a vacancy for a graduate-level personal finance reporter. This is a one-year paid internship working partly from home and partly from MM’s London office. If you know anyone who might be interested in this opportunity, please do draw it to their attention.

Finally, there has been a lot of talk about the cost of living crisis this month. As you may know, Chancellor Rishi Sunak announced a raft of measures to try to mitigate the worst effects of this.

Whatever your political or economic views, I do think he has been quite generous to older people in particular. Not only will those of us receiving the state pension get £400 off our household energy bills, we will also receive an extra £300 on top of our usual Winter Fuel Allowance (that means I’ll get £500 this year).

Many pensioners will also qualify for the £150 bonus for those on non-means-tested disability benefits such as Attendance Allowance. And they may also get the £650 cost of living payment going to anyone receiving various means-tested benefits (everyone getting pension credit will qualify for this, for example). Some households will receive a total of £1,500 in additional benefits through these measures, which should certainly help in these challenging times. .

If you would like to know more about the latest round of financial support from the government, Martin Lewis has a good summary on his Moneysaving Expert website. The government has also published a web page which sets out all the help that may be available for those on lower incomes.

That’s enough for today, so I’ll close by wishing you a very happy Jubilee Holiday. Whatever you are doing in the next few days – going away or staying home with family and friends – I do hope you have a relaxing and enjoyable time. As ever, if you have any comments or queries, please feel free to leave them below. I always love hearing from my readers 🙂

Jubilee

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that posts may include affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered, but it does help support me in publishing PAS and paying my bills. Thank you!

If you enjoyed this post, please link to it on your own blog or social media:
Equity Release 3

Can I Rent Out My House With Equity Release?

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This is the third in a series of collaborative articles on the subject of equity release. This one looks at the important question of whether you can still rent out your house (or part of it) if you take equity release.

 

 

As the equity release industry expands, UK-based older homeowners are being offered more flexible retirement mortgage solutions to combat the problem of insufficient funds in retirement.

While equity release is a fantastic product, there are some terms and conditions that may put limitations on what you do with your property.

74% of UK-based retirees own homes, and many of those live in large family properties where the kids have moved out. With the chance to make up to £7,500 tax-free a year through the government’s Rent-a-Room scheme (including qualifying Airbnb lets), renting out a room or your whole property can be a great way for retirees to generate extra income.

But if equity release is something you’re considering, the big question is, can you rent out your house after taking equity release?

Equity release expert John Lawson of SovereignBoss explores this topic in the following report to help you understand all the equity release criteria to ensure you make a sound decision.

What is Equity Release?

Equity release is a financial product designed for older homeowners to unlock the cash in their property while still living there.

What’s great about these products is that repayments are completely voluntary and there is no risk of foreclosure. Instead, the loan and any compound interest are repaid when the last homeowner passes away or enters long-term care. Money taken through equity release is tax-free and can be used for any purpose.

Finally, equity release borrowers can opt to release their money in a lump sum, place it in a drawdown facility, or receive it as a monthly income.

Lodgers v. Tenants and Equity Release

One of the key components to an equity release loan is that you need to live in your home for at least six months a year and it must be considered your primary residence. Does this mean you can welcome lodgers or tenants?

There are some key differences between the two:

  • A Tenant – A tenant generally has more rights than a lodger due to a Tenancy Agreement. The landlord will need to get permission to enter the rented space and must conduct regular gas safety checks (if gas is connected). Once a contract is signed, a landlord can evict the tenant after six months, providing acceptable practices are followed. A landlord will also need to return the tenant’s deposit as per The Tenancy Deposit Scheme (TDS).
  • A Lodger – On the other hand, a lodger can be removed from the property at any time, given ‘sufficient’ notice. This is usually 28 days but can be less. A big difference between a tenant and a lodger is that a licence is signed instead of a lease agreement. The document will set out the terms and conditions of the agreement and the rules of the property.

Very importantly, the general rule with equity release is that homeowners may have lodgers but not tenants. (1)

Can I Rent Out My Home with Equity Release While I’m on Holiday?

In short, no. As per the logic above, you may not rent out your home while you’re on holiday, even if you live in the property for only six months a year. That being said, these rules could differ from one lender to the next. Therefore, should you receive income from renting out your home for half a year while moving to your holiday home, it’s worth consulting your financial adviser to see if they can find an equity release plan that permits this.

Airbnb and the Rent-a-Room Scheme with Equity Release

The great news is that Airbnb and the Rent-a-Room scheme are both considered to be lodger agreements, so you can rent out one or more rooms in your home using one (or both) of these options. With the UK being a popular tourist destination, this is a great form of retirement income, and you have the opportunity to mingle with guests and entertain people from across the world.

Of course, some areas are more popular than others for this. But even if you don’t live in a tourist hot-spot, there may still be a demand for short-term accommodation for people attending business meetings, conferences, sporting events, concerts, and so on.

In Conclusion

Equity release is a great way to gain access to property wealth, but can limit your opportunities to make money through rentals. It’s therefore important to weigh up the pros and cons carefully.

Your best bet is to discuss your future plans and intentions with your financial adviser. In general, as stated above, you can’t rent out your home once you’ve unlocked equity. But you can usually make extra income by taking lodgers, and that can be a great way to keep you busy (and supplement your pension) during your retirement years.

This is a collaborative post.

If you enjoyed this post, please link to it on your own blog or social media:
Equity Release 2

How Will Rising Interest Rates Affect the Short Term Future of the Equity Release Market?

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This is the second in a three-part series of collaborative posts about equity release. This article looks at the likely effect of rising interest rates on the equity release market.

 

The equity release industry is booming. Homeowners from across the UK may find the financial freedom they desire by unlocking one of these attractive products.

If you’re a homeowner over 55 and haven’t heard of equity release, you need to do your research. These products allow you to access cash tied up in your property for any purpose you wish. No tax is payable on this money, and you will never be obliged to move out of your home.

John Lawson from SovereignBoss has done extensive research on the future of the equity release interest rates. He has discovered that after reaching an all-time low in March 2021, equity release interest rates are rising. The big question is, how significant will the rate increase be, and will this have a short-term effect on the industry as a whole? Let’s take a look at what Mr Lawson has to say.

Interest Rate Increase

When interest rates rise, the equity release sector is inevitably impacted as well. In March 2021 interest rates hit a historic low, with some homeowners having the opportunity to unlock equity with fixed rates as low as 2.3%. This unprecedented rate drop was exciting because it wasn’t much more expensive for a homeowner to opt for an equity release than it was to have a traditional mortgage. Plus, with no repayments required in one’s lifetime, retired homeowners could save a fortune by eliminating monthly mortgage payments. (1)

Recently interest rates have increased slightly but are still quite low. Current rates range between 2.9% and 6.4%. The interest rates you achieve will be lender-dependent, but they will also be determined by your age, health condition and property value.

Experts predict that interest rates are set to rise until 2024. And with the latest announcement by the Equity Release Council (see below), now could be the cheapest opportunity to access the cash tied up in your property through an equity release mortgage.

New Compulsory Optional Repayments

In addition to interest rates rising but still being stable, on 31st March 2021, the Equity Release Council enforced guidance on lenders to offer all their lifetime mortgage clients the option for penalty-free voluntary repayments. This means that homeowners can now repay up to 40% of the amount borrowed each year.

The exact offer you receive will depend on the lender you select. But in principle, if you have the means to do so, you could pay off your equity release plan within three to 10 years, restoring your property’s value.

But that’s not all. Once you’ve released equity, there is no risk of foreclosure. You can stop and start making repayments whenever you wish. Voluntary repayments are a great idea if you can afford them, as they reduce the overall cost of your loan by preventing compound interest.

So How Badly Will the Industry Be Affected?

With interest rates still reasonable and the above announcement by the Equity Release Council, the industry is set for another record-breaking year. Eighty percent of experts agree that the industry’s value is rising, and we at Sovereign Boss are excited to see further innovation from lenders and the Equity Release Council.

In Conclusion

Whether now is the best time to opt for an equity release product is very personal. You will need to consult a financial advisor who will help you determine the best course of action for your needs. If it’s in your interest to unlock equity at this stage, however, you’re likely to find a fantastic deal, with product flexibility better than ever.

So, while interest rates are rising, they’re not too much of an issue at this stage. And there is certainly no indication that there will be any short-term impact on the equity release industry. On the contrary, we are set for another record-breaking year.

That being said, it’s too early to predict the long-term impact that interest rates increase will have on the industry. But SovereignBoss considers it their responsibility to keep you updated with the latest industry trends.

This is a collaborative post.

If you enjoyed this post, please link to it on your own blog or social media:
Why Does the Equity Release Industry Look Set to Boom This Year?

Why Does the Equity Release Industry Look Set to Boom This Year?

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Today I have the first in a series of three collaborative posts on the subject of equity release. This one examines the growing popularity of equity release and why it looks set to boom in the year ahead.

 

The equity release industry saw a massive expansion in 2021, with a record-breaking sum of over £4.8 billion being unlocked by retirees across the UK. This unprecedented growth has been welcomed amid a global pandemic, as the Equity Release Council helps regulate a retirement product that has given many retirees the means to a desperately needed income in these tough economic times.

Mark Patterson, the equity release expert from EveryInvestor, joins the ranks of fellow industry authorities in predicting that 2022 is set to be another record-breaking year. Let’s take a look at what’s expected and determine if unlocking equity is a good idea over the next few months.

What Is Equity Release?

Equity release is a widely popular financial product for UK-based homeowners older than 55. In a nutshell, it gives you the opportunity to use your property’s equity but still live at home. With a third of UK retirees having less than £10,000 in retirement savings, equity release offers a lifeline to many. What’s more, the money can be used for any purpose.

According to figures from the Equity Release Council (ERC), equity release clients borrowed a total of £4.8 billion last year, a 24% rise on 2020’s figure.

Why is the Equity Release Industry Growing Amid a Tough Economy?

While many industries have crumbled in the wake of Covid 19, the equity release sector has grown tremendously. This is for several reasons, including:

  • Equity release provides financial security in a tough economic time.
  • The Equity Release Council has made the industry safe and is shifting a historically bad reputation.
  • Interest rates hit an all-time low in March 2021, and homeowners have received the best deals yet, with fixed-for-life interest rates.
  • Finally, growth inspires growth. As the industry expands, lenders offer more flexible products with bonus features, such as a free valuation or no completion fee.

What’s Predicted for 2022?

The future of equity release looks bright in 2022, and 80% of experts predict growth, with some believing this will be vastly beyond regular inflation. There are some key industry features that are likely to impact the industry (1).

First, the Equity Release Council announced on 31 January 2022 that all equity release lenders must offer the opportunity for voluntary loan and interest repayments. This announcement is welcome for potential borrowers, as voluntary repayments can vastly reduce the cost of your loan, yet there’s no obligation or risk of foreclosure.

On a slightly less positive note, equity release interest rates will rise in 2022 and should continue to do so until 2024. However, this could actually mean further industry growth. Rates are set to rise only slightly, and homeowners applying now will likely begin their equity release plans before we see any further increases.

Should I Unlock Equity from My Home at This Time?

With the market as it stands, it is a good idea to unlock equity if you’ve been planning to do so. However, it’s more complicated than just looking at the state of the industry.

Whether or not you should unlock equity from your home will depend on your personal circumstances and stage of life. What’s great is that equity release is safe; it’s overseen by the Equity Release Council and regulated by the Financial Conduct Authority (FCA).

However, to determine if it’s a good idea to unlock equity from your home, you should speak to a financial adviser. After all, seeking advice is compulsory when opting for an equity release product. The team at EveryInvestor will always encourage a whole-market financial adviser as they have an overview of the whole equity release market.

In Conclusion

Between flexible plans, the opportunity for voluntary repayments, and interest rates still low, now is a great time to release your property value through equity release. With another record-breaking year ahead of us, the industry is booming, and many more retirees are set to sign up to an equity release plan. Could you be next?

This is a collaborative post.

If you enjoyed this post, please link to it on your own blog or social media:
My Investments Update March 2022

My Investments Update – March 2022

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Here is my latest monthly update about my investments. You can read my February 2022 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, my main portfolio is currently valued at £20,859. Last month it stood at £20,870, so that is a modest fall of £11.

Nutmeg main portfolio March 2022

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £3,166 compared with £2,682 last month. However, that includes an extra £500 I deposited in February. If you deduct this from the current value that gives a figure of £2,666, a net fall of £16.

Here is a screen capture showing performance over the last month.

Nutmeg Smart Alpha March 2022

Obviously a big factor affecting equity prices this month has been the situation in Ukraine. The orange dot on both charts above shows the date when Russia invaded.

The war in Ukraine is above all a human tragedy, but inevitably it has serious implications for investors as well. So far, as you can see from the charts, the invasion hasn’t had a major impact on my Nutmeg investments (there was actually a bigger fall the previous month, due partly to tensions in Ukraine but also to economic factors like rising inflation). But obviously, if things go badly in the coming weeks, there could be bigger losses to come.

Even so, I intend to stay calm and avoid any panic reaction. I certainly don’t intend to crystallize my losses since the start of 2022 by selling up. I have already topped up my investment once while asset values are depressed and intend to do so again before this year’s ISA allowance ends in April.

As I have said before on PAS, all equity investments should be regarded as medium to long term. And it is worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return on my main portfolio of 45.72% (or 64.72% time-weighted). I should also mention that I selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls over the last couple of months.

  • If you also have a Nutmeg portfolio and plan to withdraw from it in the next few months, there is certainly a good case for switching to a lower risk level right now.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience over the last six years, they are certainly worth considering.

If you haven’t yet seen it, check out also my blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (as mentioned, my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should be) opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I put an initial £100 into this in mid-February 2021 and another £400 in April. Everything went well, so in June 2021 I added another £500, bringing my total investment on the platform up to £1,000.

Since I opened my account, my Assetz Exchange portfolio has generated £44.26 in revenue from rental and £74.68 in capital growth, a total of £118.94. That’s a decent rate of return on my £1,000 investment and does illustrate the value of P2P property investment for diversifying your portfolio when equity markets are volatile.

I won’t bother publishing a statement on this occasion as it’s not hugely different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and – in every case now – showing a profit on capital. So I am very happy with how this investment has been doing.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

As mentioned, my investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have over £2,100 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question. At present all my Kuflink loans are performing to schedule.

Another of my Kuflink investments reached maturity in the last few weeks and I reinvested the capital released. You can see a screen capture of the new project below, a loan to convert some waste ground in the Stevenage district into a car park. It was a different sort of project from those I have previously invested in, but the case set out on the website seemed convincing.

Kuflink investment Stevenage

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!

  • Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.

I’d also particularly draw your attention to Kuflink’s revised and more generous cashback offer for new investors [affiliate link]. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

  • I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].

Moving on, I have another article on the always-excellent Mouthy Money website. This is quite a personal one in which I set out my views about the FIRE (Financial Independence, Retire Early) movement. For various reasons set out in the article I am not a fan of this. You can read my article here 🙂

I also recommend reading the article on Mouthy Money by my blogging colleague Finance Dee titled Panicked About the Stock Market? Why It Pays to Keep Calm and Carry On. Dee’s views very much reflect my own on this subject.

That’s more than enough for now, so I’ll sign off till next time. I hope you are keeping safe and well, and (if you live in England especially) are enjoying the more relaxed Covid restrictions that now apply. Here’s looking forward to a more normal spring and summer than the last two years. If you’re planning any UK short breaks, don’t forget I have a list of places I have visited and recommend here 🙂

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that this post includes affiliate links (disclosed). If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.

If you enjoyed this post, please link to it on your own blog or social media:
Investments Update Feb 2022

My Investments Update – February 2022

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Here is my latest monthly update about my investments. You can read my January 2022 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, my main portfolio is currently valued at £20,870. Last month it stood at £22,275, so that is a fall of £1,405.

Nutmeg Main Portfolio Feb 2022

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This is now worth £2,682 compared with £2,837 last month, a net fall of £155. Here is a screen capture showing performance over the last year.

Nutmeg Smart Alpha Feb 2022

There is no denying 2022 has got off to a disappointing start as far as these investments are concerned. Overall, they take the value of my portfolio back to where it was at the end of June 2021.

It is though worth noting that since I started investing with Nutmeg in 2016 I have still enjoyed a total return on my main portfolio of 45.8% (or 64.81% time-weighted). I should also mention that I have selected quite a high risk level for both my Nutmeg accounts (9/10 for the main one and 5/5 for Smart Alpha). This has served me well generally, but I’m sure investors who selected lower risk levels will have seen smaller falls this month.

Of course, it’s not just Nutmeg investors who have had a bad month. Equities generally have taken a tumble in the last few weeks. Commentators have varying opinions about this, but two reasons are typically mentioned: (1) the rising tensions (and threat of war) in Ukraine; and (2) rising inflation rates allied with the removal of monetary stimulus measures as we come out of the pandemic. Obviously nobody knows for sure which way things will go, but this recent post from the Nutmeg blog sets out some grounds for cautious optimism over the year ahead.

Personally I intend to take advantage of the current dip by topping up my Nutmeg investment while asset values are depressed. I plan to add to my Smart Alpha holding, as overall this has been doing slightly better than my main portfolio. I’m also conscious that the end of the 2021/22 tax year will soon be upon us. That means the end of the current year’s ISA allowance, so it really is a case of use it or lose it!

  • The above is just my view, of course, and should not be construed as personal financial advice for anyone else to follow.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience over the last six years, they are certainly worth considering.

If you haven’t yet seen it, check out also my blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (as mentioned, my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should be) opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I put an initial £100 into this in mid-February 2021 and another £400 in April. Everything went well, so in June 2021 I added another £500, bringing my total investment on the platform up to £1,000.

Since I opened my account, my Assetz Exchange portfolio has generated £37.18 in revenue from rental and £91.19 in capital growth, for a total return of £128.37. That’s an increase of £35.99 on last month alone, and does I guess illustrate the potential value of P2P property investment for diversifying your portfolio when equity markets are volatile.

I won’t bother publishing a statement on this occasion as it’s not massively different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and – in every case now – showing a profit on capital. So I am very happy with how this investment has been doing.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

As mentioned, my investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have investments with is Kuflink. They have been doing well recently, with new projects launching almost every day. I currently have just over £2,000 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, when this happens additional interest is paid for the period in question.

Several of my Kuflink investments reached maturity in the last few weeks and I reinvested the capital released. Here is one of the new projects I invested in, a loan to convert a disused medical centre in Five Ways, Birmingham into residential accommodation. It looked a solid investment, and I also liked the fact that it was redeveloping a derelict building in Birmingham, a city where I lived for around twenty years.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £150 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms in the past. My days of putting four-figure sums into any single property investment are behind me now!

  • Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform (including the one shown above) being IFISA-eligible.

I’d also particularly draw your attention to Kuflink’s revised and more generous cashback offer for new investors [affiliate link]. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

  • I also recently published a blog post about another P2P property investment platform called BLEND. Like Kuflink, they offer the opportunity to invest in secured loans to experienced property developers. They offer (on average) somewhat higher rates of return than Kuflink, though arguably with a little more risk. As well as my blog post about BLEND, you can also check out what they have to offer on their website [affiliate link].

Next up, I wanted to give another plug for an excellent low-key sideline-earning opportunity I have mentioned previously on Pounds and Sense. This opportunity is based on matched betting, a sideline I have pursued for several years myself. Several PAS readers (including my sister Annie!) have signed up for this and are now enjoying a tax-free, hassle-free sideline income from it 🙂

I have been asked not to divulge too many details about this publicly, for good reasons I will explain privately to anyone who may be interested (and no, it’s not illegal!). It doesn’t require any financial outlay and is risk-free and entirely hands-off (once you have set up your account). No knowledge of betting is required and you don’t have to place any bets yourself (this is all done by the company’s clever software). You just have to set up a separate bank account for bets to go through, but running the account is entirely financed by the company.

The company has changed its terms somewhat for new members. You now get a larger £100 initial reward payment once your account is up and running, and then £25 every month you remain a member. I think this is a good move personally, as setting up the account does involve a little work on your part (though it’s certainly not like going down the mines). So the £100 in effect compensates you for your time, and once it’s done you continue to get £25 a month for no effort at all.

The company is constantly developing its offering, partly in response to feedback from PAS readers. They recently launched a new mobile-friendly website to make it even easier for new members to sign up (once you’re up and running you shouldn’t need to use the website at all). They also recently incorporated an Open Banking app so that members don’t have to provide their online banking info to the company, as some people were concerned about this.

Please note that this opportunity is only open to honest, trustworthy people who haven’t done matched betting before and have no more than two accounts already with online bookmakers. For more information (and to receive a no-obligation invitation) drop me a line including your email address via my Contact Me page. And yes, I will receive a reward for introducing you, but this will not affect the service or the rewards you receive.

  • In the interests of full transparency, I should say that if you do matched betting yourself, you may be able to make more money than that being offered by the company. However, you will have to research the techniques in detail, place all bets yourself, and probably subscribe to a matched betting advisory service such as Profit Accumulator [affiliate link]. This opportunity is really for those who want an easy way to make some extra money without the hassle (or expense) of learning/applying matched-betting methods themselves.

Moving on, I have another article on the always-excellent Mouthy Money website. Coincidentally, this is about my experiences with P2P property investment over the last few years, both good and not-so-good. Do check it out! 🙂

I was also quoted by Jackie Annett of the Express newspaper in this article about working after retirement. It’s a short but interesting read, especially if you’re coming up to retirement (or already there) yourself.

That’s more than enough for now, so I’ll sign off till next time. I hope you are keeping safe and well, and (if you live in England especially) are enjoying the more relaxed Covid restrictions that now apply. Here’s hoping that normal life across the whole of the UK will be able to resume very soon!

Disclaimer: I am not a qualified financial adviser and nothing in this blog post should be construed as personal financial advice. Everyone should do their own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Note also that this post includes affiliate links (disclosed). If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect the product or service you receive or the terms you are offered.

If you enjoyed this post, please link to it on your own blog or social media:
Kuflink Review

Kuflink: My Review of this P2P Property Investment Platform

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Today I am looking at P2P property investment platform Kuflink.

I have been investing with Kuflink for five years now, so this is a fully updated repost of my original review.

What is Kuflink?

Kuflink is an online platform offering opportunities to invest in loans secured against property. These loans are typically made to developers who require short- to medium-term bridging finance, e.g. to complete a major property renovation project, before refinancing with a commercial mortgage.

Kuflink offer three types of investment, as follows:

  1. Select-Invest (individual loans)
  2. Auto-Invest
  3. Tax-free IFISA (Innovative Finance ISA)

Auto Invest and IFISAs both automatically invest your money across a number of loans and pay a fixed interest rate, typically between 7 and 9%. You can choose a 1-year, 2-year or 3-year term, and interest is paid annually (it is automatically reinvested at the end of each year with the two-year and three-year products). The Auto-Invest product is basically the same as the IFISA, but without the tax-free wrapper.

  • At one time only the Auto-Invest option was available for IFISAs, but nowadays you can choose your own investments if you prefer. The great majority of Self-Select loans on the Kuflink platform are IFISA-eligible. If you check out the Self-Select listings on the Kuflink website (see image below), this will tell you whether any particular loan is IFISA-eligible or not.

Individual Select-Invest loans pay interest rates varying between about 6 and 7.2%, depending largely on the LTV of the loan (loan to value, a measure of how secure the loan would be in the event of a default). The higher the LTV, the riskier the loan, and – other things being equal – the higher the interest rate paid in consequence. You can see a screen capture below of three Select-Invest loans available on the platform at the time of writing.

Kuflink investments January 2022

As a reasonably experienced P2P investor, I put my money into Select-Invest loans. These typically have a duration of six months to a year and (as mentioned above) pay interest from around 6 to 7.20 percent. That obviously isn’t as much as some P2P property platforms (e.g. BLEND), but I think it represents a fair balance between risk and reward. Kuflink also invest in every loan themselves up to 5% of the value of each loan – so, as the expression goes, they have skin in the game.

My Kuflink Review

I found signing up with Kuflink a quick and easy process. They do the obligatory money-laundering checks, but in my case anyway this was all done electronically behind the scenes. I uploaded a copy of my passport and was approved almost immediately. I started by depositing £500, but you can start with as little as £100 if you like.

Initially I put my money into a 12-month loan paying 7% annual interest. One good feature I didn’t grasp initially is that with Select-Invest loans interest is paid monthly. So once a month I receive interest payments on all the loans I am currently invested in. This is paid into a wallet, from which you can either withdraw to your bank account or reinvest.

  • Kuflink recently introduced an option to have monthly loan repayments automatically reinvested rather than paid into your account as cash. This effectively boosts your interest rate by the power of compounding, as you then receive interest on the reinvested payments as well. Currently this option is available for most, but not all, loans on the platform. You can see which of your loans compounding is available for via your Kuflink dashboard.

I have continued to invest in Kuflink, and have also reinvested in new loans when the original ones were paid off. Another good feature is that money invested in a loan but not yet released to the borrower attracts interest which is paid as cashback once the loan has gone live.

There have been no defaults so far on any of my loans, and Kuflink say on their website that to date nobody has lost a penny on their platform. I have experienced short delays with loans being repaid, but in such cases you continue to earn interest, of course.

Secondary Market

A new feature on Kuflink I like is the Marketplace (secondary market). Here you can buy loan parts from other investors who want to sell up early. You can also put up for sale any (or all) of your own loan parts.

The number of loan parts listed in the Marketplace went up in the early months of the pandemic, as many investors understandably wanted (or needed) to access their cash. This created short-term buying opportunities which I was happy to take advantage of. Loan parts offered via the Marketplace typically have only a few months to run, so you can expect to get your capital back quickly (and can then reinvest it if you wish). Only loans in good standing with monthly repayments up to date may be listed on the  Marketplace, so that offers some reassurance against default – though of course it is by no means a guarantee.

In recent months the number of loan parts listed on the Marketplace has reduced considerably. And those that are tend to be snapped up quickly. As a would-be investor this is slightly disappointing, but it does indicate that people are keen to take advantage of the opportunities on offer. It also means that if you want (or need) to exit a loan early, accessing your money should be a quick and easy process.

Pros and Cons

Based on my experiences, here is my list of pros and cons for the Kuflink investment platform.

Pros

1. Easy sign-up process.

2. Low minimum investment.

3. All loans secured against property.

4. Choice of investments and approaches.

5. Manual and auto-invest options.

6. Kuflink invest in all loans themselves, so they have a strong incentive to ensure they are safe and secure.

7. They also cover the first 5% of losses on any loan before investors are affected (although this has never happened yet).

8. Money invested but not yet released to the borrower attracts interest which is paid as cashback once the loan has gone live.

9. In-depth information is provided on the website about all loans, so you can see exactly how your money will be used (and by whom).

10. There have been (according to Kuflink) no investor losses to date.

11. Customer service (in my experience anyway) is fast, friendly and helpful.

12. There is a 14-day cooling off period for new investors.

13. Marketplace (secondary market) for buying and selling loan parts.

14. No charges to investors lending on the primary market and only a 0.25% fee if you resell a loan part on the secondary market.

15. On most loans you can opt to reinvest monthly repayments to boost your net interest rate.

16. Tax-free IFISA option available.

Cons

1. Rates paid aren’t the highest in P2P lending.

2. Delays with some loans being repaid (although investors do earn extra interest if this happens).

3. No mobile app [UPDATE FEB 2023 – An app is now available.]

Conclusion

Overall, my experiences with Kuflink so far have been entirely positive and my investments have been generating the promised returns. I started cautiously with them, but have gradually built up the amount I have invested on the platform. Although – like all property P2P platforms – they were adversely affected by the pandemic, they appear to have come through it strongly, with new loans now being added almost daily.

As mentioned above, although Kuflink don’t pay the highest rates in P2P lending, I think the returns on offer are realistic and sustainable. The steady expansion of the platform seems to testify to this, as does the fact that they have received several industry awards. These include Best Alternative Business Funding Provider in the Business Moneyfacts Awards in both 2018 and 2019 and Best Service From an Alternative Funding Provider in 2020.

Kuflink are also highly rated on the independent TrustPilot website, with an average 4.6 out of 5 (‘Excellent’). At the time of writing 82% of reviewers award them the maximum five-star rating, which is among the highest figures I have seen for a financial services platform.

As with all P2P lending, your money does not enjoy the same level of protection as bank and building society accounts, which are covered (up to £85,000) by the Financial Services Compensation Scheme. Nonetheless, the rates of return on offer are significantly better than those from most financial institutions. And the fact that all loans are secured against bricks and mortar – and Kuflink themselves have cash invested in them – clearly offers some reassurance.

From my experience, Self-Select loans tend to fill up quickly. On the positive side, this shows investors have confidence in Kuflink and want to invest through the platform. On the minus side, it means there are typically no more than two or three new loans open for investment at any time.

Clearly, no-one should put all their spare cash into Kuflink (or any other P2P investment platform). Nonetheless, it is certainly worth considering as part of a diversified portfolio. Not only are the rates of return much higher than those offered by banks and building societies, they are relatively unaffected by ups and downs in the stock market. P2P loans aren’t a way of hedging your equity-based investments directly, but they do help spread the risk.

If you have any comments or questions about this review or Kuflink in general, as always, please do leave them below.

Disclosure: As stated above, I am an investor with Kuflink myself, and if you invest £500 or more via my link above I will receive a bonus for introducing you. Money is at risk. You should always do your own ‘due diligence’ before investing, and seek advice from a qualified financial adviser if in any doubt how best to proceed.

If you enjoyed this post, please link to it on your own blog or social media:
The Blend Network P2P Property Investment Platform

Spotlight: The Blend Network P2P Property Investment Platform

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Today I am spotlighting BLEND, a peer-to-peer property platform that lends to established businesses (mostly experienced property developers). BLEND’s loan-based crowdfunding platform was founded by a team of former investment bankers with substantial experience in real estate and finance.

What Does BLEND Offer?

BLEND offers individuals the chance to invest in loans secured against property. They specialize in loans in geographical areas that banks and other lending platforms typically pay less attention to, e.g. Northern Ireland, though they fund projects across the whole of the UK. Loans are typically for small developments or building renovation/conversion projects. Some examples are shown in the screen capture below.

BLEND network projects

As mentioned above, all loans are secured against property. The LTV (loan-to-value ratio) is usually quite low, giving greater security for investors. Interest rates on offer range from 7 to 12 percent.

BLEND has some similarities with Kuflink, which I reviewed in this blog post a while ago (and invest in myself). Both offer the opportunity to invest in secured loans. Kuflink typically offers lower interest rates, however, between 5 and 7 percent. The risk level with Kuflink loans is (arguably) lower, but it should be said that BLEND so far has an unblemished record, with no loans in arrears or default.

The minimum investment on BLEND is £1,000, which means it is really aimed at high net worth and professional investors. It’s also worth noting that only a small number of new loans tends to be available at any given time and they typically sell out very quickly.

  • Using the AutoLend feature is recommended to ensure that you don’t miss out when a new loan comes on to the market.

Secondary Market

One drawback with any type of property investment is that it’s not as liquid as (say) equity-based investments. BLEND does offer a way around this with its secondary market, however.

Lenders who wish to liquidate early can sell their loan parts on the secondary market. Note that finding a buyer on the secondary market may take time and there is always a risk of no-one wanting to buy your loan part. You can start selling a loan in multiples of £1,000 on the secondary market as soon as funds have been released to the borrower.

Unlike the primary market, as a lender you will be charged a secondary market fee of 0.60% (or £6 for every £1,000 of capital) on capital outstanding. BLEND only charge this upon the successful resale of the loan portion you have listed in the secondary market. The secondary market is free for buyers.

Pros and Cons

A full list of Pros and Cons for BLEND is shown below.

Pros

1. Easy sign-up process

2. Well designed, user-friendly website

3. All loans secured against property

4. Low LTV ratios for added security

5. Manual and auto-invest options

6. In-depth info provided on the website about loans, so you can see exactly how your money will be used (and by whom)

7. No investor losses to date

8. Marketplace (secondary market) for buying and selling loan parts

9. No charges to investors lending on the primary market and only a 0.6% fee if you resell a loan part on the secondary market

10. Rates of return of up to 12% are at the upper end for P2P lending

11. Can invest via a SIPP or SSAS (private pension scheme)

Cons

1. Minimum investment of £1,000

2. Limited supply of new loans to invest in

3. No tax-free IFISA option

Final Thoughts

With a minimum investment of £1,000 (per project), BLEND obviously won’t be suitable for everyone. But if you have that sort of money available, the promised returns of up to 12 percent are undoubtedly enticing.

I like the fact that BLEND are very selective in the projects they back, even if that does mean the flow of new opportunities is limited. It’s also good that they perform in-depth ‘due diligence’ on every loan and publish full details about this on the website, including independent valuations. This means investors know exactly what the potential risks and rewards of a project are.

The absence of any charges to investors (apart from on the secondary market) is another big plus. And the presence of a secondary market offers the opportunity to exit loans early if your circumstances change (though, as noted above, you aren’t guaranteed to find a buyer).

BLEND is probably at the riskier end of the P2P property spectrum, but in my opinion the returns on offer fairly reflect this. Risks are also mitigated by generally low LTV ratios and the detailed research mentioned above. The fact that no loan has so far gone into default or even into arrears is impressive, though there is of course no guarantee this couldn’t happen in future. It does offer some reassurance though.

Finally, BLEND has an average Trustpilot rating of 4.6 (‘Excellent’), with 95% of people awarding them a maximum five stars rating. This is among the highest ratings I have seen for an investment platform on Trustpilot.

As always, if you have any questions or comments about this post or P2P property investment more generally, please do leave them below.

Disclaimer: I am not a qualified financial adviser and nothing in the article above should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and seek professional advice if in any doubt how best to proceed. All investing carries a risk of loss.

Please note also that this post includes affiliate links. If you click through and perform a qualifying transaction, I may receive a commission for introducing you. This will not affect in any way the terms you are offered or the product/service you receive.

If you enjoyed this post, please link to it on your own blog or social media:
My Investments Update December 2021

My Investments Update – December 2021

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As regular readers will know, I recently started posting monthly updates about my investments. These partly replace the ‘Coronavirus Crisis Updates’ I was posting from March 2020. You can read my November 2021 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, my main portfolio is currently valued at £21,963. Last month it stood at £21,940, so that is a modest rise of £23. Those figures don’t tell the whole story, though. In the early part of November, the value of this portfolio rose as high as £22,398. Unfortunately then news of the new Omicron variant spooked the markets and share prices fell dramatically. In the last few days there has been a modest recovery, resulting in the small month-on-month gain referred to above.

Nutmeg Main Portfolio Dec 2021

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This has followed a similar trajectory, though it has actually done a bit better than my main pot. It is now worth £2,795 compared with £2,756 last month, a net monthly increase of £39. Here is a year-to-date screen capture showing performance to the start of December 2021.

Nutmag Smart Alpha pot Dec 2021

As I always say, you shouldn’t judge the performance of any equity-based investment on a month-by-month basis. But in these strange times I remain very happy with how my Nutmeg investments are doing. Hopefully the initial panic over Omicron may prove to have been excessive (it may help that there is growing evidence that this new variant typically causes only a mild illness). That being the case, I remain optimistic that the modest recovery in the markets over the last few days will continue.

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience they are certainly worth considering. If you haven’t yet seen it, check out also my blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should) in my view opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I have invested a total of around £1,000 in AE so far (I began with £100 in February 2021 and topped up twice).

Since I opened my account, my portfolio has generated £29.50 in revenue from rental and £45.86 in capital growth, for a total return of £75.36. I won’t bother publishing a statement on this occasion as it’s not massively different from last time. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and in most cases showing a profit on capital. So I am very happy with how this investment has been going.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

As mentioned, my investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here if you like. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have some investments with is Kuflink [referral link]. They appear to be doing well, with new projects launching almost every day. I currently have just over £2,000 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, where this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £100 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms (such as this one). My days of putting four-figure sums into any single property investment are behind me now!

Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform being IFISA-eligible.

I’d also particularly draw your attention to their revised and more generous cashback offer for new investors. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

Kuflink has some similarities with Assetz Exchange (see above). However, it’s important to note that with Kuflink you are investing in loans secured by property, whereas with Assetz Exchange your money is going into actual bricks and mortar. Kuflink loans typically pay around 7% annual interest. With Assetz Exchange projected yields from rental are generally a bit lower at around 5%, but you do of course have the potential for capital appreciation as well. There is also an argument that investments on AE are more secure as properties are typically rented out to organizations such as housing associations which are publicly funded. But I should emphasize that over the years I have been investing with Kuflink I have never lost any money with them and I understand nobody else has either. That is of course no guarantee it couldn’t happen in the future, but personally I find it quite reassuring.

I haven’t mentioned my trial investment on European loan crowdfunding platform Nibble for a while, so thought I should remedy that this month. This has been proceeding without any issues. My initial test investment of 20 euros matured in September so I reinvested the entire sum at the same annual interest rate of 9.7 percent (see screen capture below).

Nibble Dec 21

I get weekly updates from Nibble confirming how much interest has been added to my account. Money has been a bit tight recently so I haven’t topped up my initial investment. Once I start getting my state pension (see below), however, I should have more available to invest, and Nibble is definitely on my list. My full review of Nibble can be found here.

Moving on, I have another article on the always-excellent Mouthy Money website. This is about how to save money on your motoring costs. I enjoyed researching this and learned some new and surprising things while doing so!

I’d also like to remind you that I am participating in not one but two pre-Christmas giveaways. One of these offers the chance to win a Hotel Chocolat Velvetiser kit worth around £150 in total. And the other giveaway has an amazing prize of cash and goods from homeware brand Arca valued at over £1,000 in total. Do check them both out (if you haven’t already) and get your entries in. It would be great if a Pounds and Sense reader were to win one (or both) of these great prizes 🙂

Finally, as I mentioned in this blog post, December 2021 marks a landmark for me, as I shall reach my 66th birthday and qualify for the new state pension. I am due to get my first payment on Christmas Eve. Tempting though it is, I probably won’t be blowing it all on a big party! 🎈🎈🎈

That’s all for now, so please stay safe (and warm) in these challenging times. And please don’t let scare stories in the mainstream media freak you out. At the time of writing hospitalizations and deaths from Covid in the UK have actually been falling steadily for weeks. So despite what the fear-mongers would have you believe, it really isn’t all bad news!

Have a lovely Christmas, enjoy socializing with friends and family, and I’ll be back again with another investments update at the start of 2022.

As always, if you have any comments or questions about this post, please do leave them below.

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My Investments Update November 2021

My Investments Update – November 2021

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As regular readers will know, I recently started posting monthly updates about my investments. These (partly) replace the ‘Coronavirus Crisis Updates’ I was posting from March 2020. You can read my October 2021 Investments Update here if you like

I’ll begin as usual with my Nutmeg Stocks and Shares ISA, as I know many of you like to hear what is happening with this.

As the screenshot below shows, my main portfolio is currently valued at £21,940. Last month it stood at £21,046, so that is a rise of £894. That means it has recovered from the £675 drop last month and is now £250 higher in value than it was two months ago.

I know some PAS readers were worried about the falls in their Nutmeg portfolios (and equities generally) in September 2021, so I hope this will provide some reassurance. As I said last time, stock market investments in general should be regarded as medium- to long-term. In the short term some ups and downs are entirely to be expected. 

Nutmeg main portfolio Nov 2021

Apart from my main portfolio, I also have a second, smaller pot using Nutmeg’s Smart Alpha option. This pot also rose in value in October. It is now worth £2,756 compared with £2,633 last month. That’s a rise of £123, which again covers the fall last month with a bit to spare. Here is a six-month screen capture showing performance to the end of October 2021.

Nutmeg Smart Alpha portfolio Nov 2021

You can read my full Nutmeg review here (including a special offer at the end for PAS readers). If you are still looking for a home for your 2021/22 ISA allowance, based on my experience they are certainly worth considering. If you haven’t yet seen it, check out also my recent blog post in which I looked at the performance of Nutmeg fully managed portfolios at every risk level from 1 to 10 (my main port is level 9). I was actually pretty amazed by the difference the risk level you choose makes. If you are investing for the long term (and you almost certainly should be) opting for a hyper-cautious low-risk strategy may not be the smartest thing to do.

As regular readers will know, this year I am using Assetz Exchange for my IFISA. This is a P2P property investment platform that focuses on lower-risk properties (e.g. sheltered housing on long leases). I have invested a total of just under £1,000 in AE so far (I began with £100 in February 2021 and topped up twice).

Since I opened my account, my portfolio has generated £24.80 in revenue from rental and £59.97 in capital growth, for a total return of £84.77. I won’t bother publishing a statement on this occasion as it’s not massively different from last month. The bottom line is that I (still) have investments in 21 different projects with them and all are performing as expected, generating income and in most cases showing a profit on capital. So I am very happy with how this investment has been going.

  • To control risk with all my property crowdfunding investments nowadays, I invest relatively modest amounts in individual projects. This is a particular attraction of AE as far as i am concerned. You can actually invest from as little as 80p per property if you really want to proceed cautiously.

As mentioned, my investment on Assetz Exchange is in the form of an IFISA so there won’t be any tax to pay on profits, dividends or capital gains. I’ve been impressed by my experiences with Assetz Exchange and the returns generated so far, and intend to continue investing with them. You can read my full review of Assetz Exchange here if you like. You can also sign up for an account on Assetz Exchange directly via this link [affiliate].

Another property platform I have some investments with is Kuflink [referral link]. They appear to be doing well, with new projects launching almost every day. I currently have just over £2,000 invested with them, quite a large proportion of which comes from reinvested profits. To date I have never lost any money with Kuflink, though some loan terms have been extended once or twice. On the plus side, where this happens additional interest is paid for the period in question.

My loans with Kuflink pay annual interest rates of 6 to 7.5 percent. As mentioned above, these days I invest no more than around £100 per loan (and often less). That is not because of any issues with Kuflink but more to do with losses of larger amounts on other P2P property platforms (such as this one). My days of putting four-figure sums into any single property investment are behind me now!

Nowadays I mainly opt to reinvest the monthly repayments I receive from Kuflink, which has the effect of boosting the percentage rate of return on the projects in question

You can read my full Kuflink review here. They offer a variety of investment options, including a tax-free IFISA paying up to 7% interest per year with built-in automatic diversification. Alternatively you can now build your own IFISA, with most loans on the platform being IFISA-eligible.

I’d also particularly draw your attention to their revised and more generous cashback offer for new investors. They are now paying cashback on new investments from as little as £500 (it used to be £1,000). And if you are looking to invest larger amounts, you can earn up to a maximum of £4,000 in cashback. That is one of the best cashback offers I have seen anywhere (though admittedly you will need to invest £100,000 or more to receive that!).

Kuflink has some similarities with Assetz Exchange (see above). However, it’s important to note that with Kuflink you are investing in loans secured by property, whereas with Assetz Exchange your money is going into actual bricks and mortar. Kuflink loans typically pay around 7% annual interest. With Assetz Exchange projected yields from rental are generally a bit lower at around 5%, but you do of course have the potential for capital appreciation as well. There is also an argument that investments on AE are more secure as properties are typically rented out to organizations such as housing associations which are publicly funded. But I should emphasize that over the years I have been investing with Kuflink I have never lost any money with them and I understand nobody else has either. That is of course no guarantee it couldn’t happen in the future, but personally I find it quite reassuring.

On the subject of property investments, I also have a modest amount in the property crowdfunding platform Property Partner. At one time I was a big fan of this platform, but I lost a bit of enthusiasm when they introduced a raft of extra fees and charges.

Nonetheless, I do still have investments in around a dozen properties with PP, valued from about £30 to £2000 (in one case). The five-year-anniversary process restarted a while ago after being suspended due to Covid. For those who don’t know, after five years investors in a property are given the opportunity to exit at the current market value, as long as there are enough other investors on the platform willing to buy their shares at this price. If not, the property concerned is sold on the open market.

About half of ‘my’ properties have now gone through this process. I voted to sell on each occasion, as I am looking to reduce the total I have invested in property (as I feel too much of my portfolio is still in this form). In some cases all went to plan and I received payment for my shares, which I then withdrew. In other cases, however, not enough investors wanted to buy the shares that investors such as me wanted to sell. Consequently these properties are now being sold, which may of course take many months. Unfortunately the property in which I had £2,000 invested is one of those. To add to the joy, dividends are suspended on all properties that are being sold, so all I can do now is wait for the sales to go through.

On the plus side, Property Partner was taken over a while ago by the US digital home-ownership company Better. One of the first decisions taken by the new owners was to scrap the unpopular £1 monthly account fee and reduce the AUM (Assets Under Management) fee from 1.2% p.a. to 1.0% p.a. They are also offering fee rebates for their most active traders. All of this means that Property Partner may be worth another look now, especially as there’s a steady flow of opportunities to invest in properties going through the five-year process. That means you can buy shares in these properties at a fair market price without having to pay the usual fees associated with new listings.

Anyway, if you’d like to know more, here is a link to the Property Partner website [affiliate]. Note that if you sign up with Property Partner via my link and invest with them, I will split the commission I receive with you, meaning you could get up to £750 cash back.

You can also read my original review of Property Partner here, although this is obviously somewhat out of date now.

Moving on, I have another article on the always-excellent Mouthy Money website. This is all about the difference between saving and investing and why, in my view, you should do both.

In addition, last weekend the Express newspaper published an article about me and my blog, in which I shared some top tips for saving money on food shopping. Do check it out!

That’s all for now, so please stay safe and warm, and look out for your friends and neighbours as well as we head into the cold winter months. I’ll be back again with another investments update at the start of December.

As always, if you have any comments or questions about this post, please do leave them below.

Disclosure: I am not a qualified financial adviser and nothing in this post should be construed as personal financial advice. You should always do your own ‘due diligence’ before investing and take professional financial advice if in any doubt before proceeding. All investing carries a risk of loss.

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