The best kept secret in investment
With banks paying as little as 0.5% p.a., many income investors are searching for higher returns, but without the risk of capital loss associated with bond and equity markets. Freehold ground rents pay 6% p.a. Reliably. With no capital loss.
Buy-to-let property is often seen as a safe haven long term investment, but it too can lose significant value very quickly and comes with its own set of problems. In depressed times it can be very difficult to sell; property needs insuring, maintaining and repairing. You might be hurt by rising interest rates and the income stream will dry up when there is no tenant, or worse still, if the tenant isn't paying the rent. Then there are all the obligations of a landlord, laid down in law.
What if you could reap the benefits of property ownership without these risks?
By purchasing the freehold on which a building sits and at a far lower cost than the building itself, an investor will receive the annual "ground rent" that the leaseholders are bound by contract to pay to the owner of the freehold. These ground rents typically return 6% per annum.
Freehold ground rents are not the preserve of pension funds and the wealthy. Here, we will explain what freehold ground rents are, why the returns are constant, why the capital value doesn't go down and how anyone can own them.
"ground rents - a true safe haven.... private investors have long valued the unusually reliable returns ground rents offer"
"regular income streams provide stable returns for investors...."
"too many investors overlook the huge returns on offer"
"ground rent.... has to be paid without any exceptions....very low risk investment"
Global Property Guide