Have you ever considered investing in property or developments, ever thought of building a wealth pot for your family, children or yourself? Then please take the time to read and learn about the term and model ‘Property Bond or Loan Notes.
In summary, Property Bonds/Loan Notes are one of the most attractive options to gain entry, quickly and smoothly when investing.
The real advantage to this investment method is that you can begin investing without requiring any expert knowledge of construction, land development or huge amounts of market knowledge and therefore providing a sensible choice for any new or experienced investor.
With recent tax changes and new rules/regulations to the buy-to-let market, Loan Notes/Property Bonds offer a smarter alternative and higher ROI's.
If your interested in finding out more then please see the following:
What is a Loan Note/Property Bond?
It is a legally binding contract between a lender (the investor) and a borrower (the property developer) that details specific terms as to how the investment can be used, how much interest is paid to the investor and when, how the investor’s capital is secured, and when the initial investment is paid back.
They allow individuals to offer their capital in the form of a loan (which is why they are often referred to as ‘loan notes’) to a property development company in return for a defined rate of interest over a defined period of time.
At the end of the defined period, the investor’s original capital is returned in full. Interest can either be paid during the loan term, but at a slightly reduced interest rate, alternatively you can receive all interest and capital back at the end of the term for a higher rate of interest.
During construction, the developer will normally obtain the proceeds for repayment by refinancing the borrowing against the increased site value or through the sale of some or all of the property units.
Why are they a hands-off solution?
One of the main attractions of Loan Notes/Property Bonds is that investors can be completely hands free and not have to deal with any day to day management of their investment.
For investors or Families who do not have the time, experience or expertise, this investment model is a fantastic solution.
They offer the best of both worlds: attractive fixed returns with the peace of mind that comes from the security of 'bricks and mortar'.
This suits most new and experienced investors.
Property Bonds/Loan Notes has proven to generate some of the best return on investments (high yields) and with a low risk, which is calculated.
If you are thinking of the future and wanting to build a healthy pot, for your family, your children or yourself then this may be a model for you. These medium to long term investment options pay a healthy rate of interest with security in place to protect your capital.
Deciding the right investment opportunities can be difficult but we hope the above has offered some clarity and understanding.
We personally choose these models, along with our close (UK) and offshore investors.
For more information please get in touch using the contact page.
Several models available and different term lengths to suit all.
Comments