New fund helps investors in property abroad
16 February 2010
A new overseas property fund will give intermediary investors the chance to use their holiday properties while they are not being rented out.
The minimum amount required to enter into the Safe Haven fund would be an investment of £55,000.
It works as a mutual fund, where homes are bought from the bottom of the property market and, over time, are expected to increase in value.
However, the difference is that half the money will be invested in overseas holiday properties, which the investors can use rent-free.
Nigel Gourlay, founder and chief executive of the Safe Haven Property Company, which specializes in shared ownership, told the Financial Times that the fund would allow investors to diversify and would offer them a different investment experience.
It is hoped that investors will receive a return of ten to 12 per cent from the Guernsey-based fund.
This would be generated through the rent-free use of overseas property and any rise in the market value of the properties.
Half of the fund’s money would be invested in UK properties, with the other half being invested in resorts and city apartments worldwide.
International Property News