Are property funds an investment worth building?
Their promoters claim property funds pay a much better annual income than bank accounts and offer a decent chance of future capital gains. We take a look at the risks and rewards
Bonds are in “bubble” territory, the critics say, and equities, even after recent falls, are expensive. Deposit accounts at banks, meanwhile, pay miserable interest. Is commercial property, still 40% below its 2007 peak and paying a yield of around 5% a year, the better option?
Small investors can choose from a number of property funds, most which can be put in a tax-free Isa. Their promoters claim they pay a much better annual income than bank accounts, yet also offer a decent chance of future capital gains.