Debt investment options available to investors can be a great gateway to the world of real estate. This practice has been growing in popularity over the past few years – particularly due to its defensive qualities and the ability to establish fixed income streams for investors. In fact, many established investors are starting to see the benefits of debt investment (particularly loan notes) over stocks, shares and deposit accounts due to the potential returns from loan notes being higher. So why is that case? And how can loan notes add to your property investment UK portfolio?
The Benefits Of Real Estate Debt Investment Opportunities
Following the financial crisis that struck the world in 2007, the dynamics of both risk and return within the real estate world, and real estate debt, changed. It created a profitable landscape for investors due to the low loans-to-value (LTV) ratios and increased margins. Since then, investors have been waking up to the debt investment options and benefits provided by real estate debt – particularly the spreads offered over other credit risk. Some other benefits include the security provided against physical underlying assets, greater total current income return, defensive qualities (by way of bespoke financial covenants and good underwriting), increased capital allocation capacity and improved downside protection versus direct investment in property.
Consult Diversified Property For Debt Investment Expertise
When approaching the world of real estate debt investment, loan notes and bonds, it’s important to seek out good advice from consultants. These consultants can not only help you adjust to the strengths and benefits of these debt investment options, they can also point you in the direction of products that can provide maximum returns with minimum risk. Diversified Property offers this exact service – offering property investment opportunities with excellent fixed returns and clear exit strategies. To find out more, visit https://www.diversified-property.com. To talk to our experienced team today, just get in touch via firstname.lastname@example.org, +44 (0) 0203 808 2645, or fill in our online form.