Property Funds

Property funds are a form of investment that allows individuals to invest in property without needing the kind of large cash or mortgage based outlay to do so. So, here you can invest in property with relatively small sums without having to buy or manage properties yourself with a view to making long term capital returns. This kind of investment is kind of like standard share investments except the return you get on your investment here is based on property values and rental incomes from the properties in the fund’s portfolio.

Property funds use the investments from multiple investors to invest in a range of properties. These properties will generally be commercial properties that are then rented out to businesses. Typical types of properties involved in this kind of investment include offices, industrial units and sites and retail properties.

Property funds will have different ways of investing their members’ money. Some, for example, will only invest in property whilst others will spread their risk and may also invest in shares in property businesses and may also hold some funds as cash deposits. As with any kind of investment of this type there is the possibility that the investor will see higher returns than standard savings products. Conversely, there is also the risk that they will lose money if property markets and rental incomes fall.