What Are Property Bonds?
It seems as if not too many people know what property bonds are, so I thought I would give you a little insight into what property bonds are and how the impact the industry.
Property bonds can also be known as property investment bonds. They are a means for developers to raise a bit of capital from possible investors in the form of a loan. This is usually done within the early stages of the development of the project. The property bond is a contractual agreement that has to be between only the investor who is proposing the bond and the property developer who is developing the site. In the contract, the investor will put forward how much money they are willing to lend the developer, and the developer will have to explain thoroughly on how the investment is going to be used.
Since there has been a lot of recent changes to the tax treatment of buy-to-let investments, it is believed that for most people, loans that are backed by properties seems as if it is the smartest alternative for investors. The reason for this is that they offer investors a high fixed returns rate, plus assurance that you will receive your investment back, with added value on top.
Property still remains to be one of the best and most popular forms of investment for consumers and investors. This is mainly due to the fact that the returns available on investments in this industry in the UK are commonly very high. Because of this, property bonds are one of the most popular and attractive options for investors to make the most money.
If you have any more questions about property bonds, or any other property questions, then please contact us and we shall be of help!
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