Property bonds are quickly becoming a good alternative investment opportunity for short-term investment growth. Here are some tips on how to go about catching the latest investment wave.
Research thoroughly first
Like any investment, property bonds do carry certain risks and research, together with professional financial advice is essential before making a purchase. For example, look for property bonds that offer fixed returns on investment and are FCA approved. Bonds that are asset-backed can also add extra security.
View the market as a whole
You can make more informed investment decisions when you’re well-informed on the market you’re considering putting your money into. In the UK, there is a multi-billion pound fund that will be administered through the HCA, enabling developers across the country to build many more new homes. This knowledge could be useful for those looking to make a profitable, secure investment in property, but always take expert advice before you commit.
Be prepared to quit while you’re ahead
Property bonds can be a much more effective acquisition that actually purchasing a house. One reason for this is that you’re not as physically attached to a bond as you are to a property and it’s much easier to cash-in your investment while you’re making a nice profit if you want to. In addition, there are no maintenance costs or troublesome tenants to worry about!
Plan your exit strategy
Although the markets fluctuate and investments can typically fall, as well as rise fixed term bonds offer capital growth possibilities and are often one of the more secure investment opportunities on offer.
With a fixed term bond you are also given an exit date, and you will also have more of an idea of the returns you’re likely to get enabling you to plan ahead for what you’ll do next with your money. You could continue with property bonds if the prevailing market conditions are appealing, or you could diversify your portfolio and move your money elsewhere.
Rather than investing in bricks and mortar, fixed term property bonds give speculators the opportunity to place their money in a secure, relatively predictable investment vehicle. Always discuss any investment opportunity with an experienced financial advisor, before making a commitment.