Here at TJ PaD we work with a lot of property investors, just like you. They may be at the beginning of their property investment journey or just dipping their toe in the water. Some have lots of experience in investment, while others just want to find ways of building their property or investment portfolio.

In this blog post we look at property funds and if they could be better for your property investment goals than a buy-to-let property. Some investors looking into the world of property investment feel that buy-to-let mortgages are getting more difficult with the current global situation. If you don’t have a lot of money for the large deposit or upfront costs, then you might want to consider a property fund. It is a popular alternative for a buy-to-let property investment. It’s another way of investing in the property market. What Are Property Funds? Property funds rely on expert fund managers to buy up properties. They then pass on the income and capital growth to the investors who put their money into the funding pot. Property funds are commonly seen in commercial properties. However, they are being seen a lot more in residential properties in recent years. What Are The Types Of Property Funds? There are different types of property funds, and it really depends on what you are looking for from your investment. There are closed-end property funds for example. These are listed on the stock market and known more commonly as REITS. You can buy and sell these like you would any other shares. There are also other property funds that are open ended. These are where new units are issues when more people want to invest. The prices of these funds will go up and down dependent on the popularity of the fund and the underlying value of the properties that the funding is invested in. What Are The Benefits Of A Property Fund? There are many benefits to a property fund. For example, it is often much easier to buy and sell property funds than it is market and sell a buy-to-let property when you need to release funds. Property funds will also offer you diversity in your property portfolio. This is because you are often investing in a diverse set of property types across different areas. Investing in a property fund can be very rewarding with regard to financial rewards, but also as a worthwhile hobby and way to spend your spare time. It is less time-consuming than a buy-to-let property investment and can fit into your investment portfolio to diversify it with ease. Please be aware, we are not FCA registered so cannot give advice on investments so please ensure you carry out your own due diligence and speak to your Finance specialist before making any decisions. If you are thinking about investing in property, call our team. We can talk you through a selection of property investment opportunities we have available, to help you make the best decision for your investment.