Returns

A comprehensive free guide for experienced investors. An Introduction to Property Bonds delivers information on how asset-backed property bonds can provide easy access to the high-yielding property market, offer potentially tax-free returns when Innovative Finance ISA (IFISA)-eligible, and present the opportunity to diversify an investor’s portfolio.

In detail, the guide explores:
– How property bonds can provide potentially higher returns against a backdrop of low interest rates
– Why property bonds have increased in popularity, and how they can offer an attractive hands-off approach to the property sector
– How investors can get involved with property bonds through tax-efficient methods including the IFISA, SIPP and SSAS pensions

A property bond (also known as a property investment bond) is a way for property companies and developers to raise money from investors in the form of a loan.

Property bonds are an alternative investment product, and they have the potential to provide attractive returns - for experienced investors in particular - which are uncorrelated to traditional equity and bond markets.

Property bonds are corporate bonds (also known as loan notes) issued to investors by property companies or developers.

An Introduction to Property Bonds, our free guide, provides an in-depth insight into property bonds and how they work. Download it here. 

Bonds are usually issued for a fixed term - generally two to five years - with a target fixed-rate of return paid to the investor quarterly, annually or at maturity. 

When investing, investors receive a bond certificate and usually benefit from security over the underlying asset by way of a first or second ranking legal charge.