The Ticking Retirement Timebomb & How To Protect Yourself

Frazer Fearnhead, CEO of The House Crowd, presented a webinar entitled The Ticking Retirement Timebomb and How To Protect Yourself on 8th February 2018.

You can view a recording of his presentation here.

As promised on the night, we have collated all questions asked on the night and provided responses below.

If you have further questions please get in touch with our friendly member support team (Damian and Nigel) in the following ways:

Email: [email protected], or [email protected]

Call: 0161 667 4264

We are here to help 9-6 Monday-Friday. 

Questions and Answers…

Q. “Do you charge any fees?”

A. No, the interest percentage on each product quoted is the amount paid to you, there are no deductions.

Q. “Do you have any statistics about how often your properties lose in value and the investors lose their money?”

A. There has been no loss of in any of our peer to peer loans or development deals. The only time our investors have ever lost money was in respect of one speculative off plan deal for a development in Sutton, Surrey. That particular deal was marketed as being high risk. It is something we offered as a one off and will not be offering again.

Q. “Do you work with/know of any other peer to peer lending company that you would be willing to recommend?”

A. We don’t work with any other peer to peer lending company nor do we know enough about their operations to recommend any.

Q. “How are any peer to peer investment returns taxed?”

A. I’m afraid we can’t offer tax advice beyond saying that your profit from peer to peer lending is taxable income. Some tax payers qualify for £1000 income from interest tax free but cannot advise whether would you qualify for that allowance. We will soon be launching an innovative finance ISA where you will be able to invest up to £20,000 p.a. under a tax free wrapper.

One attendee asked us the following tax related questions….

Q. “How can I invest surplus monies from my regular income (my currently working as a PAYE employee) in your Property Vehicle – which also allows me to invest in a similar way to when if I put my money into a Pension – i.e. Tax Free payments-in and (hopefully) tax free income taken out?”

Q. “If I earn over £100K p.a. how can I maintain my current personal HMRC Tax Allowance (Code circa. 1250L) and invest anything over £100K in Property (as a ‘Pension-Type’ Tax Free Investment), in order to avoid my Personal Tax Allowance being reduced. NOTE – I just found out this year about the reduction in Personal Tax Allowances for earnings over £100K p.a., although I do not recall having this over the past 15 years of earning over £100K p.a.?”

Q. “How can I invest money from my current Pension Fund in Property (Tax Efficiently), in terms of money paid in and monies subsequently drawn-out?”

A. I’m afraid we are unable to provide advice about your personal tax situation. This is something you will need to to discuss with a qualified financial advisor. To date we have been able to accept investment from SASS but no other type of pension.

Q. “Is The House Crowd FCA authorised?”

A. Yes. We achieved FCA authorisation as of December 2017.

“What happens to my money if the borrower doesn’t repay the loan on time?”

A. Re – Peer to peer lending – I have recently written explaining how our lending process works and what happens if a borrower doesn’t repay on time. You can read more here.

Re – Property development investment – Repayment is dependent on us selling the houses. If it takes longer to sell than estimated then you will be paid back later, but you will continue to earn interest until you are repaid.

Q. “I was planning on investing a few months ago but found the sign-up process quite difficult. Can you help me with these steps?”

A. If you’re having any problems registering your account you can contact our Member Support team – Damian and Nigel. They can help you through the process and answer your questions. Our office hours are 9-6 Monday-Friday.

You’ll be pleased to know we will be launching a brand-new website in March 2018. Over the past 12 months we have recruited an in-house tech team who have been working to make everything easier for our members. We’re pretty excited about this development and will send more details in the New Year.

Q. “I like the idea of peer to peer lending but I don’t have the time to keep on top of everything you have to offer. Can I set up my account to invest in certain products automatically?”

A. We have exciting plans to develop new, easier ‘auto invest’ products in 2018. This means you can invest your funds into one product and we will spread them into a more diverse portfolio. You just earn a fixed rate and don’t have to do anything more.

In the meantime, you may be interested to know we offer free text alerts to notify people when we launch a new investment opportunity. You can join this free service by texting THC to 82228 (service applies to UK mobiles only).

Q. “I filled in a form for the free info pack a while back but when I go to login at The House Crowd it doesn’t work. Please can you help?”

A. Due to the way our systems are set up at the moment if you downloaded a free information pack on our website you won’t automatically be registered as a House Crowd member.

Just click on this link to register your free account. Remember to complete your profile as well – this only takes a couple of minutes. Once done you’ll be able to view all our current investments in more detail and receive free email alerts when new investments are launched.

Q. “I really enjoyed the webinar. Are you planning on doing more in the future?”

A. Thanks for your positive feedback! We are planning a new webinar explaining how our property development investments work in March. We will send you an invite a week or two in advance of that one.