January is over, pay day has come which allows investors to get back on track with finding the best space for their investments. People are searching the financial landscape for a place to put their funds to ensure they start working for them.
There are options for investors in 2015 which of course, all come with their pros and cons. There is risk involved in investments ranging from Peer-to-Peer Lending to Bonds, however choosing the correct type of investment is vital for your security and sanctity. Sensible investments requires diversification and a range of extended terms.
Money Wise approached investment experts for their advice and property was found to be an investment that yielded the most favourable returns whilst offering a level of security. Commercial property funds have been highlighted as reliable investments over the past few years and as investors move further into 2015 the prospects are still upbeat. While Lowcock generally expect returns to stabilise in 2015, having risen significantly in 2014, he still anticipates that “investors could expect as much as a 10% return between growth and income in 2015”.
The attraction to investing in property is that investors can place their funds in a range of pots. Investors can spread their cash on a broad range of buildings in alternative areas that can allow them to receive a decent annual return on their funds. This unique selling point attracts investors to alternative property investments which can range from Peer-to-Peer lending to hedge funds.
Wellesley & Co. are a Peer-to-Peer lender that specalise in asset backed lending. Currently, the company secure all of their loans against property at an average loan to value rate (LTV) of 65%. Therefore, users of the platform are investing in property, just without the middle man. For a borrower to gain finance through Wellesley & Co. proposals are put to the Wellesley Credit Committee. Here the Committee debate the eligibility of the loan application and if the individual fits the Wellesley model and also, the liquidity of the property that has been proposed as security. This is in place to ensure that in the unfortunate event of a borrower defaulting on payments, the property can be sold swiftly to reduce the time investors are left with a shortfall in their funds. Further to this, Wellesley & Co. offer a Provision Fund that investors can apply to, to cover any losses incurred by a defaulting loan. To date, Wellesley & Co. have had no loan defaults. Investments through Wellesley & Co. see your capital at risk and interest payments are not guaranteed if a borrower defaults.