How Modern Property Investment Has Adapted
The overlooked property investment sector
For investors, property in the UK has proved highly resilient and traditionally offered strong returns over the long term. However, right now the opportunities for making money from property investment seem scarce – apart from one.
Overall, confidence in the UK property market is low from domestic investors. House price growth, for example, is at a six and a half year low, according to figures from the Your Move Index. In September 2018, annual house price growth in England and Wales was 0.9%*.
Investment in physical residential property is suitable if you are happy to either live in the property and can wait it out for the market to return to its traditional levels of growth. For many looking to achieve a significant return from their investment on an annual basis, however, this is not satisfactory.
For investors looking for yield, buy-to-let has been the answer, until recently. Any return investors are hoping to make from the growing rental market has been dramatically eroded with recent changes to tax relief and a crackdown on tax evasion in the sector. The falling attractiveness of buy-to-let as an option is reflecting in recent figures showing the market declining for the next three years fuelled by government changes and a weaker housing market.
However, despite what seems a series of bad new stories for property, it still represents a strong and relatively low-risk way of investing – so how do you overcome this issue? How do you bet on the property market while also achieving a good annual return on your investment?
The answer is through property bonds:
Generally, bonds are a fixed-income investment where you, as an investor, agrees to lend your money to an organisation, corporation or government in exchange for a fixed return. While they don’t normally offer high rates of return, they do offer low risk.
Developers have been favouring property bonds as a means to raise the capital for a development without pleading to banks or other lending sources. In exchange for investment in a property bond tied to a particular development, the developer pays a fixed-rate return for a set period.
Great George St (Liverpool) has recently been acquired and is offering market leading ROIs
Investing in a property bond offers the smart investor a chance to experience the regular returns on their capital. For many investors who have seen the value of their investments drop, underperform or have watched yields dry up, property bonds offer a different opportunity to experience returns again from the property market.
Investment in a reputable asset-backed property bond can offer substantial rewards against competing investments while removing all the risk. Discover how you can achieve up to 60% return in less than five years: Click Here.
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*Source: Your move index September/October house price index View Here
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