Property remains one of the most popular forms of investing for consumers, given the returns available in the UK market, Property Bonds are one of the most attractive options for gaining access to that sector, without requiring any expert knowledge of construction or land development. Indeed, they have become increasingly popular as the attractiveness of buy-to-let investments has diminished due to significant dilution of the tax advantages in recent years.
Property Developers issue Property Bonds for planned developments in order to raise funds to buy the necessary land and/or to finance the construction work. In other words, Property Bonds are an alternative source of finance for the developer, rather than, traditional bank borrowing. They are essentially loans and, as such, Property Bonds are often referred to as ‘loan notes’.
The bonds are usually issued for a fixed term, which is typically set for a period of time that allows the Property Developer to complete the construction and generate a return.
Property Bonds / Loan Notes are highly are highly speculative and illiquid investments. Whilst they do offer a fixed rate of return, such returns are not guaranteed and investors could lose all of their original investment.
Development properties are bought with investor funds. These properties are registered to and held in special purpose vehicles that have been set up as limited companies. The Loan Note / Bond Instrument holds a charge over these special purpose vehicle’s. Details of the structure are contained in the Loan Note Information Memorandum / Security Trust Deed. The Security Trustee holds the various security interests created on trust for the bondholders.
Bond issuers are able to set their own interest rates and income payment terms. Bonds issued with an income feature will have interest payment set at either quarterly or half yearly. Initial capital investment is repaid at the end of the bond term. The term is typically set at 24 or 36 months.
I have been using Hunter Jones since 2016 via a referral from my brother, an existing client. They have always had my best interests and been very helpful and sincere.
I have never dealt with such a professional company. Customer care is faultless. Every question asked was answered in such a way that I, as a first-time Loan Note investor, could make informed decisions without a hard sell or a misleading rushed feeling.
Hunter Jones offers investment opportunities and provides excellent and professional customer service. In particular, the marketing at Hunter Jones is helpful and the information provided to me about Loan Notes gave me a better understanding of the opportunity. I now have further confidence in both the investment and Hunter Jones.
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