Are property bonds a good investment?

PabloWilson

I'm currently investing with bank and they offering a very poor return. I just thinking of moving this to another account with a better interest rate. so last days i am checking some of blogs and news, there is another opportunity in the UK property investment with 5 yr fixed rates return ??

dunstonh

Some of these are scams. Some or very illiquid investments of a very high risk nature. Many of which have gone on to fail.

Without info on the ones you are looking at it is hard to say. However, based on past experience, you are probably looking at the higher risk end with a high chance of significant losses and possibly no FSCS protection.

There is a load of conventional options to invest in covering the risk scale. There is no need to jump from low-risk cash to gung ho unregulated investments or illiquid investments from niche companies with no track record.

Flobberchops

If it seems too good to be true, and there's no FSCS protection, run a mile.


As dunstonh suggested, there are safer high-yield options. Opening a stocks and shares ISA for example.

AnotherJoe

If they are what i think they are, then if you are looking for the opportunity to lose all your money with no redress, irrespective of any guarantees* mentioned in the blurb , then this is probably something to seriously consider.
What fixed rates are they offering? If its around 8% or more,then its definitely what I'm thinking of.



* these will turn out to be worthless

Aretnap

Read the London Capital and Finance thread which is usually on the first page of this forum for an example of what can go wrong with the type of unregulated bonds you seen to be talking about. That one promised that all is loans were secured against assets. The investors are finding out how hollow a promise that can be.

It's hard to be specific as you don't name a particular product but as above, at best is likely to be much higher risk than you understand - much riskier than a bank account or even many shares. At worst it could be an outright scam. Avoid unless you are knowledgeable enough to do your own due diligence - and with respect if you were knowledge enough to do that you wouldn't need to ask for help on an internet forum.