Property Loan Notes

Kenp240

Like many savers/investors I've been looking around for opportunities to get a better return than the banks are offering. I'm already "cashed out" on high rate current accounts.
I've come across Property Loan Notes that are offering between 8-12% with minimum of £10k investment.
Is this a case of "If it looks to good to be true...."
Can anyone comment on their own experiences?

jimjames

Without looking into the details of any specifics as there wasn't a name or link I'd ask why you're looking at investments that could lose 100% of your money when there are regulated investments that will not be at that sort of risk?


Guarantees are worthless if they're backed by an entity that could go bust or disappear.

Jonbvn

If you're interested in higher risk investments, I would suggest you look at some P2P lending sites such as saving stream which offers 12% to lenders secured mostly on property.

jimjames

A quick google on this term came up with this company, there are probably many others too.


http://www.hunterjonescapital.com/images/Mariner_Care_Group_Teaser.pdf


Despite the website saying it's run by an FCA regulated entity as it clearly says in the document it is only designed for sophisticated, high net worth investors and can involve capital loss.

Malthusian

I don't understand why you're going from no-risk current cash accounts to completely the opposite end of the risk scale - unregulated corporate loan notes with a very significant risk of losing all of your money - without considering anything in between.

Sam_J12

Why not just invest in the stock market?

jimjames

Sam_J12 wrote: »

Why not just invest in the stock market?

Some people seem to think that an unregulated investment that offers a guaranteed return is less risky than investing in the stock market. In reality the opposite is true and regulated investments in a balanced portfolio although unable to guarantee returns are far less risky.

Kenp240

Thanks for all responses.

I didn't put in any links as I'm looking at several institutions, all of which are FCA regulated and the investments are all asset backed. However, these are investments not savings or deposits and so they do not qualify for the FSCS guarantee scheme but then again neither does a stocks and shares ISA (for example). Also "asset backed" is not a guarantee of getting (all) your cash back if it goes pear shape.

I'm a fairly seasoned investor and these could form part of a diversified/balanced portfolio - if I decided to invest. From my perspective it's all about risk v reward and the individuals risk appetite. This would be at the high risk end of my portfolio but as long as I do my homework first I'm OK with that. I've invested in high risk investments before and have not been burnt yet! Always a first time.

At the moment, as part of my homework, I'm looking for anyone who has specifically invested in these and so I'm checking out a few forums/blogs. If I can't find anyone who has invested then that will be a warning in itself.

This is my first post on MSE so it will be interesting to see the general response to this kind of high risk investment.

ChesterDog

I know that you know, but I do wonder about the merit of some of these asset-backed investments.

I'm not sure I want to end up with compensation for my financial loss in the form of one wall of a house in Bradford, or an aeleron on a wing somewhere on a far-flung airport apron, or a pile of logs that someone could live in.

AndyT678

Kenp240 wrote: »

This is my first post on MSE so it will be interesting to see the general response to this kind of high risk investment.

Bargepoles normally get a mention at this point but it's your money. You understand that it's not risk free and gains are, I assume, taxable but if you're punting £10k in a £500k portfolio then why not give it a go if you fancy it.

Jonbvn

ChesterDog wrote: »

I'm not sure I want to end up with compensation for my financial loss in the form of one wall of a house in Bradford, or an aeleron on a wing somewhere on a far-flung airport apron, or a pile of logs that someone could live in.

I've currently got bits of a Ferrari