UK property bonds
Invest in UK property bonds with Knight Knox
The benefits of investing in property have been widely reported in recent times thanks to soaring house prices and rental values in recent years, but one of the most accessible and high-yielding avenues of property investment that is often overlooked is investing in UK property bonds.
A property bond is a secured loan between an investor and a property developer at the beginning of a project that allows developers to fund the project in the early stages and investors to earn income over a set period of time and are one of the fastest-growing markets within the UK property investment sphere. Still, they can somewhat fly under the radar compared to residential, student and commercial property investment. Despite this, investing in bonds offers investors the chance to invest at a lower entry point than traditional property investments whilst benefitting from a hands-off and lucrative income stream.
What are property bonds?
A property bond is essentially a method property developers can use to raise funds to build their site in the form of a legally binding loan from property investors, used to raise funds during the early stages of development.
How do property bonds work?
When a property developer is looking to finance a new project, they may offer the chance for people to invest in bonds as opposed to or in addition to taking out a loan or selling equity to raise the required funds. Investors will purchase a bond for a set amount and specific interest rate – known as the coupon – and a maturity term and date, which specify the duration of the bond and the date on which the original investment amount is returned to the investor.
The bond will then, depending on the terms, pay the coupon to the investor at regular intervals throughout the agreed lifetime of the bond, or as a lump sum in addition to the initial investment on the maturity date. For example, if an investor purchases a £20,000 bond at a 6% interest rate for 5 years, over the course of the bond their NET income will be £6,000.
Are property bonds a good investment?
Property bonds are an extremely good investment, offering investors the chance to earn income through a less volatile method than the likes of stocks and shares, and at a lower purchase price than traditional investment properties. Property bonds are also typically offered at a lower amount than traditional property investment opportunities, making them more accessible to a wide range of investors. In addition to these lower investment prices, UK property bonds traditionally offer higher interest rates compared to traditional avenues in the recent economic landscape.
How risky are property bonds?
As with all investments, UK property bonds come with their own risks. With this in mind, it is important to find a reputable company with a proven track record of paying investors on time and delivering successful, on-budget projects to invest with.
UK property bond partners: Acorn Property Invest
To ensure we are able to offer the best UK property bonds to our investors, we have partnered with leading property bond provider, Acorn Property Invest.
Part of the Acorn Property Group, Acorn Property Invest offers investors a platform to invest in the UK property market, providing a fixed-term investment with either regular, fixed income or capital growth.
Their approach is simple, transparent and ideal for investors looking to invest in the UK property market without the tie of a buy-to-let and benefit from the potential offered by the UK property market.
Get in touch with us today to find out more about our partnership with Acorn and the offerings available to Knight Knox investors.
These 11 investment offerings have a total Gross Development Value (GDV) of almost £400m
Acorn Property Invest has repaid over £380m to their lenders over the last 10 years.