Investing in property without the risk

poppy10_2

What do you guys think of this product?
http://online.newcastle.co.uk/invest/Produ...GBPB4/Index.htm

The Newcastle has developed a 50:50 Bond for the investor who is looking for the security of a Building Society Account, but would like to benefit from the growth potential of the Halifax House Price Index (HHPI), whilst still having a fixed return on half of their funds.

Guaranteed Property Bond Element

• Building Society Account paying 50% of any growth in the HHPI (uncapped) over the 4 year term.

• No matter what happens to the HHPI, you will not lose your initial investment, your capital is guaranteed.

Fixed Rate Element

• A fixed rate of interest at 9% Gross/AER for one year.

Seems pretty sweet to me... :j

Aegis

A guaranteed equity bond... but for houses!

Personally I wouldn't touch it. Essentially it's offering 4.5% gross on your investment for one year (if I understand the 50/50 part correctly... It might be 9% for one year, which is nothing to write home about if your money is tied up for 4 years). Then you only get 50% of the growth available...

I suspect that a good REIT (Real Estate Investment Trust) might be a better bet for growth.