Property bonds have a range of benefits and risk considerations that must be carefully assessed when deciding whether they are the right investment option for you.
The main benefits are;
- Potential for higher returns than more traditonal savings and investment products.
- Typically asset-backed with security over the underlying property and/or land.
- Potential for tax free returns if the property bonds are held in an Innovative Finance ISA (IFISA), Self-Invested Personal Pension (SIPP) or Small Self-Administered Scheme (SSAS).
- Some property bonds offer an added layer of protection by appointing an Independent Security Trustee.
- Property bonds offer experienced investors the opportunity to build a diversified and balanced investment portfolio.
As always, you should keep in mind that property bonds are an investment product - this means your capital is at risk and returns are not guaranteed.