What are the benefits and risks of property bonds?

Property bonds have a range of benefits and risk considerations that must be carefully assessed when deciding whether they’re the right investment choice for you.

 

What are the benefits and risks of property bonds?

Property bonds have a range of benefits and risk considerations that must be carefully assessed when deciding whether they’re the right investment choice for you. As always, you should keep in mind that property bonds are an investment product, meaning your capital is at risk and returns are not guaranteed.

The benefits of property bonds include;

  • Generally less volatile than stocks and shares
  • Returns are easily calculated
  • They may have asset-backed security
  • They offer diversification for investors

The risks of property bonds include;

  • Funds are locked away for a fixed term, and you cannot access them before the end of this term
  • Currently not regulated by the FCA