Crowdfunding is a popular way for would-be property investors to share in property developers' profits by lending them development funds. Results can be good, but wouldn't a "set-and-forget" fixed return be even better for the investor?
Speculation is often considered to be a higher risk activity than investment. We'll be covering this whole subject in future posts on Investment Education.
In the world of property bonds it's extremely rare to find an established Property peer-to-peer lending platform that offers a mini-bond to allow a truly "hands-free" investment into secured property developer loans.
In general, using bonds offers a potential way of turning speculation (such as those P2P lending opportunities with no defined return) into an investment, for those that see investment as a far safer option.
Here's an example. The Saving Stream 5-year Bond allows investors to indirectly participate in the P2P marketplace without any active management. Proceeds of each subscription for Saving Stream Bonds will be used to make loans on the Lendy Limited P2P platform. Investors will NOT become lenders on the P2P platform.
All loans made in this way are used to fund either bridging finance or development finance.
Rate of interest - 7% per annum, paid in quarterly installments from the date of issue of the Saving Stream Bond until the date of redemption.
Duration - 5-year fixed term
Issuer - Saving Stream Bond Limited, a wholly owned subsidiary of Lendy Ltd
Minimum amount per application - £5,000 and, thereafter, multiple of £1,000
Who can take up these bonds? Qualifying Individuals, companies, charities and corporations subject to local restrictions and to submission of approved anti-money laundering documentation. At the time of issue the Saving Stream Bond can be placed in a Self-Invested Personal Pension (SIPP). However, we strongly recommend that applicants seek advice as to whether the specific terms of your arrangements permit this type of investment.
To discover more about how Saving Stream works, download the brochure today:
All opinions offered are expressly generic and do not constitute financial advice. UK Investors should always consult with an advisor authorised and regulated by the Financial Conduct Authority (FCA) before making specific investment decisions.