The UK property market is currently experiencing it’s strongest year on year growth since 2007. Now we are out of the pandemic there is an unprecedented demand for real estate in the UK, driven by government stimulus including 95% mortgages with low interest rates for first time buyers.
The average house price in England increased by 9.8% till October 2021, that was from an increase of 12.2% in the year to September 2021, with the average house price in England now at £285,000.
Now is a great time to take advantage and invest in the UK property market.
Opencloud Invest have been operating in the UK property market for over 20 years and we are able to offer our clients the benefit of our experience and expertise by giving you access to some of the best off market opportunities out there.
Many investors we speak to now still believe property is one of the best asset classes to invest in however most don’t really want to get involved in the day to day hassle that inevitably comes with being a landlord. With that in mind we have a selection of handsfree invesments known as property bonds. These are high yielding short term property investments which are specifically for sophisticated or High Net worth Investors.
In our investments, a property bond is essentially a loan to a developer in return for the investor getting a fixed return over a set period of time. Before the Credit Crisis of 2007 it was relatively simple for developers to get finance for new large scale developments. They would simply go to the bank and the bank would usually lend the developer an amount based on the (GDV) Gross Domestic Value of the development, this would usually happen relatively quickly. However since then banks have been a lot more conservative in lending money for new projects, this also led to longer times for loans getting approved and the knock on effect was that many developers were missing out on great land or redevelopment opportunities because they could not organise financing in time.
With that in mind they decided to go to private investors as opposed to banks to rise finance for new developments. This enabled them to grow quicker and be more more nimble in the market.
In return for investors providing finace they offer high returns on your investment and excellent security. Usually a legal charge over the development and the developer themselves. In addition to a trustee to look after your interests if something was to go wrong.