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Why it’s not that risky being a property bond investor

Why it's not that risky being a property bond investor

Don’t believe the scare stories. Becoming a property bond investor is not as risky as some commentators make out.

We’re referring to an article in the Telegraph recently that says safe bonds now ‘offer only risk’. We disagree with this. It’s quite the sweeping statement and categorises pretty much every single bond opportunity as a risk through the title alone.

The expert property bond investor will know to do their research before parting with their money. Investing in the right property bond can not only provide potentially large returns. It can also help grow ethical sectors such as supported housing.

What you need to know before becoming a property bond investor

To be fair to the Telegraph, while it does highlight a lot of negatives around government bonds and other corporate offerings, they’ve been positive when it comes to the humble property bond. They point out that numerous opportunities are abound for decent yields.

Globally, a property bond is still seen as a popular investment proposition. Chinese property developers alone are set to issue £110 billion worth of bonds alone over the course of 2016. These offer easier access and low interest rates, contributing to their popularity with investors.

Yield is where eyes are focusing and yield-hungry investors are concentrating on London’s commercial opportunities at the moment. The UK’s largest property auction house Allsop comment that investors appear totally undeterred by the upcoming Brexit and changes to stamp duty.

London, though, is a place where many investors can be priced out. Higher yields can be found more toward the North Wes. However, property is currently at a premium thanks to a lack of housing and rising interest in the area from investors.

High property bond yields in the supported housing sector

Any property bond investor with Amyma will benefit from areas where a high yield is typical, such as in the supported housing sector. People investing in bonds with us can boost housing for vulnerable group. These are supported by independent and government-backed organisations, and also offer a much higher yield than the social housing market.

Yields are the way to go when looking to invest in property. Post-Brexit, most investors are looking for more short- and mid-term yields while the country adjusts to leaving the European Union. Yields in Manchester are said to be as high as 6.02%. Again, more evidence why the popularity of property bonds is rising amongst investors.

Supported housing projects are expanding too. A recent £10 million development in Aldershot especially for veterans has recently been launched, for instance. This is set to open in 2018 to help the most vulnerable.

Financial markets may be volatile at the moment due to a number of economic factors. Still, property bonds continue to help investors grow their money, diversify their portfolios and back projects that help make a difference in the UK.

If you’re considering becoming a  property bond investor, contact Amyma’s investment specialists today. The supported housing sector offers attractive potential yields of 8.5% fixed return from an investment starting from £10,000.