PR: How did you get into the property market?
VJ: I became an accidental landlord when I purchased my first property in London and had to relocate to New York shortly afterwards. During my career, I also managed a portfolio of mortgage-backed securities where the underlying assets where properties in the UK. More recently, I worked at a family office where I managed several property development projects in London.
PR: Why did you set up Bridge Invest?
VJ: Both myself and my co-founder were investing in bridge loans privately before we met each other. I was a landlord who was frustrated by the low yield, buy-to-let tax changes and time involved in dealing with tenants. My business partner was a property developer, frustrated by lack of suitable opportunities, the time consuming nature of development projects and associated risks, such as project delays and planning consent. When we met in 2015, we realised that there were a large number of investors (high net worth individuals, family offices and cash-rich businesses) who were intrigued by the high returns and security that bridge loans offer. Therefore, we set up a vehicle to facilitate investment in this asset class where investors had the ability to co-invest.
PR: What does Bridge Invest offer borrowers and investors?
VJ: The team at Bridge Invest has decades of experience in property investing and asset-backed lending, as well as development.
As we are not bank funded, or reliant on a single source of funds, we offer borrowers certainty that we will not withdraw funding after agreeing indicative terms. We are also very flexible on loan size - Bridge Invest completed a £25,000 second charge loan on a property in Acton for business purposes - the lender’s smallest loan to date and assisted the borrower with a business venture abroad.
For our investors, we offer full transparency, so that they are aware of the details of the borrower and the asset that the loan is secured against. Investors like the fact that the founders of Bridge Invest are also investors in the majority of the loans, so we have an alignment of interest. We combine our experience in property development and lending with a proactive investment approach, ensuring clients find investment solutions tailored to their unique needs.
PR: There seems to be no end in sight for Brexit. How is this continued unceratinty impacting property investment?
VJ: The current political turmoil in the UK has resulted in depressed activity as property investors (both domestic and foreign) are waiting on the side lines. Whether or not Brexit goes ahead, we believe that the property market will react positively to political certainty.
PR: What do you love and hate about the property market?
VJ: Property is both tangible and income-generating, which is extremely appealing to investors.
What I detest about the property market is the illiquidity. The process to buy or sell takes time and there is no certainty of sale until exchange. Associated costs such as legal fees and stamp duty exaggerate this problem.
PR: What advice would you give to the next generation of property investors?
VJ: It is essential to understand the taxation system which is constantly evolving. Properties may be subject to various taxes including council tax, income tax, capital gains tax, stamp duty land tax, corporation tax, value added tax and annual tax on enveloped dwellings. We recently came across a client looking to sell a highly leveraged property in order to raise some funds, but once capital gains tax was taken into account, a sale would have been detrimental to their cash flow.
