SavingBear Posted October 25, 2011 Share Posted October 25, 2011 (edited) Words fail me http://www.dailymail.co.uk/money/investing/article-2051856/Expecting-house-prices-rise-Soon-youll-able-invest-Isa.html Savers who think house prices will rise in coming years could soon be able to invest in an index-linked Isa that tracks property values. Castle Trust, which has applied for a Financial Services Authority trading licence, is set to launch something called a HouSA that pays investors returns based on house prices. It will be the first time ordinary investors can tap into the UK's biggest asset class - residential property is worth an estimated £4trillion – without physical buying homes. Time to invest? House prices have faltered since the highs of 2007 but optimistic investors will soon be able to take a punt on rises Time to invest? House prices have faltered since the highs of 2007 but optimistic investors will soon be able to take a punt on rises Castle Trust's innovative product will track changes in the Halifax House Price Index and savers will be able to invest in as part of their £10,680 (£11,280 from April 2012) stocks and shares Isa allowance. A three-year term or a five-year term will be available, but withdrawals of cash in the meantime will not be allowed. Castle Trust is a new firm but has some pedigree in the boardroom. As chairman, former FSA chair Sir Callum McCarthy sits above a management team that includes John Gummer, chairman of the Association of Independent Financial Advisers, and Dame Deirdre Hutton, a director of HM Treasury and former deputy chair of the FSA. Read more: http://www.thisismoney.co.uk/money/investing/article-2051856/Expecting-house-prices-rise-Soon-youll-able-invest-Isa.html#ixzz1bmTnU3XY Edited October 25, 2011 by SavingBear Quote Link to comment Share on other sites More sharing options...
The Eagle Posted October 25, 2011 Share Posted October 25, 2011 (edited) Sound like spread-betting for the masses to me... Since when are bets backed by nothing allowed in an ISA? --- Edited October 25, 2011 by awake_eagle Quote Link to comment Share on other sites More sharing options...
porca misèria Posted October 25, 2011 Share Posted October 25, 2011 (edited) Sound like spread-betting for the masses to me... Since when are bets backed by nothing allowed in an ISA? BIIK. Someone slipped a backhander to whoever regulates ISAs? Or just ran rings round them and confused them? Or maybe this isn't the full story, and it's a 'structured product' that aims to track the Halifax index but with an insurance-backed backstop for something less? Structured products are allowed, yesno? [edit to add] In principle it looks like a nice little hedge for those who don't own. But who's the counterparty? Wouldn't want to rely on governments to bail this one out! Edited October 25, 2011 by porca misèria Quote Link to comment Share on other sites More sharing options...
Redcellar Posted October 25, 2011 Share Posted October 25, 2011 BIIK. Someone slipped a backhander to whoever regulates ISAs? Or just ran rings round them and confused them? Or maybe this isn't the full story, and it's a 'structured product' that aims to track the Halifax index but with an insurance-backed backstop for something less? Structured products are allowed, yesno? Or they take the money raised and invest it in property, so you are effectively buying a shares ISA? I don't believe ISA's have to be a one way bet guaranteed, therefore insured as suggested. Shares ISA are just tax free on the gains, but you can make losses. Quote Link to comment Share on other sites More sharing options...
The Eagle Posted October 25, 2011 Share Posted October 25, 2011 (edited) When you invest in Castle Trust's House via your Isa you actually buy shares in a Jersey company called Castle Trust PCC. Castle Trust then buys the shares back from you at the end of the term. This gives you a return based on the change in the Halifax House Price Index. Looks like they created a shell company of which you buy shares. Sounds very dodgy to me... But maybe it's a good way to distract boomers from investing in BTLs! Edited October 25, 2011 by awake_eagle Quote Link to comment Share on other sites More sharing options...
porca misèria Posted October 25, 2011 Share Posted October 25, 2011 Or they take the money raised and invest it in property, so you are effectively buying a shares ISA? Individual properties don't track the index! Even if they buy thousands, they're not going to get a truly representative sample: it's got to be biased towards those that can be let out for a profit. Shares in property assets are fine, if you want them. It's the promise to track an index that looks nebulous. I'd hope to do better than that (on balance) by investing in assets where yields will exceed costs. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted October 25, 2011 Share Posted October 25, 2011 Looks like they created a shell company of which you buy shares. Sounds very dodgy to me... But maybe it's a good way to distract boomers from investing in BTLs! Why would it stop BTLs? Looks more like a "poor man's BTL"! Quote Link to comment Share on other sites More sharing options...
rantnrave Posted October 25, 2011 Share Posted October 25, 2011 Seasonal adjusting of the indices is likely to become even more liberal if this scheme takes off... Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted October 25, 2011 Share Posted October 25, 2011 FFS!! Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 25, 2011 Share Posted October 25, 2011 a structured product. I am going to make one myself. £5000 for a house price tracker certificate. PM me for details and where to send your money. Quote Link to comment Share on other sites More sharing options...
The Eagle Posted October 25, 2011 Share Posted October 25, 2011 Why would it stop BTLs? Looks more like a "poor man's BTL"! Because this shell company isn't buying any property (at least according to the article), so if boomers divert their savings into this rather than BTL, it will reduce demand for houses/flats to be used as BTL. Quote Link to comment Share on other sites More sharing options...
NEO72 Posted October 25, 2011 Share Posted October 25, 2011 This has got to be good hasn't it. Wasn't Honest EA saying recently that there are still a fair few piling into BTL in the South East, going into it for lack of alternative investment options? This would surely divert some of their funds since it relies on the 'house prices only ever go up' mentality coupled with a reluctance to get into BTL. Quote Link to comment Share on other sites More sharing options...
We’re all in this together Posted October 25, 2011 Share Posted October 25, 2011 Because this shell company isn't buying any property (at least according to the article), so if boomers divert their savings into this rather than BTL, it will reduce demand for houses/flats to be used as BTL. So what, if not buying property, will the suckers' investors' money be invested in? Call me an old cynic, but this smells of another, even more convoluted way of boosting house prices with other people's money. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted October 25, 2011 Share Posted October 25, 2011 (edited) Anything to keep the housing ponzi bubble dance going... "HouSA ! HouSA ! HouSA ! " "Buy, Buy, Buy, Buy, Buy!" http://www.youtube.com/watch?v=6qVv1pseLxA Edited October 25, 2011 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
Parkwell Posted October 25, 2011 Share Posted October 25, 2011 Wouldn't it be easier to go down William Hill? Quote Link to comment Share on other sites More sharing options...
SarahBell Posted October 25, 2011 Share Posted October 25, 2011 Castle Trust - Investments and mortgages for the life you want ... www.castletrust.co.uk/ Castle Trust helps those buying their own home to reduce their monthly mortgage payments and reduce the risk of negative equity, and provides access to ... About us - Castle Trust TV - Press centre - Contact us Is Castle Trust shared equity deal too good to be true? | Analysis ... www.mortgagestrategy.co.uk/.../is-castle-trust-shared-equity-deal-too... 20 Jun 2011 – With the mortgage market still firmly stuck in the doldrums, you would think that any innovation from lenders would be welcomed with open ... Things that are too good to be true usually are. Quote Link to comment Share on other sites More sharing options...
Bloo Loo Posted October 25, 2011 Share Posted October 25, 2011 So what, if not buying property, will the suckers' investors' money be invested in? Call me an old cynic, but this smells of another, even more convoluted way of boosting house prices with other people's money. nothing at all. Its a structured product proposal. Its a derivative in other words. So you buy a £5000 certificate from me, when you come to sell, the buyer...not me, buys it at index. Quote Link to comment Share on other sites More sharing options...
Andy T Posted February 25, 2014 Share Posted February 25, 2014 The Guardian are plugging this again - http://www.theguardian.com/money/2014/feb/22/housa-invest-residential-property-market-fund-halifax First five words of article are "House prices are roaring ahead" :angry: :angry: Quote Link to comment Share on other sites More sharing options...
winkie Posted February 25, 2014 Share Posted February 25, 2014 First five words of article are "House prices are roaring ahead" :angry: :angry: ....all this is about is selling...selling the fact that house prices will climb forever, house/land prices climbing investments will increase forever.....you will become wealthy, the sales person will get rich, the brokers/agents will glean their bit, builders will become richer, the country will become richer attracting richness, the lenders will get rich, please invest with us, open to every man and his dog with some money however it was come by.....do your bit, you deserve to do well, from not working but investing your money or another, utilise your available debt, debt is to be used not wasted, it is something you will never regret, only regret it later if you do not do it......cold calling, hot selling. Quote Link to comment Share on other sites More sharing options...
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