Buy-to-let fund that aims to reduce the risk of investing

Many landlords who have looked at investing recently in property are put off by the large upfront costs of investment. However, the rapid falls in property prices sustained over the last couple of years down by around about 20% since their peak mean that many suspect now is the time to invest.

In the past there have been a number of property funds that have opportunities for landlords to invest. Predominantly these funds were aimed at investing in new build apartments in so called 'regeneration areas' on the basis that these areas were going to offer higher returns. Rubbish! We have seen just what has happened to many of these regeneration areas they in many cases have turned into the buy-to-let ghettos of the future. These investments were often made not so that they would maximise returns for investors but more for the convenience of asset managers who could buy large blocks from a developer.

Traditional forms of property investment

Property Hawk has always advocated traditional types of long-term investment in good areas and traditional properties. We were therefore pleasantly surprised that an investment manager Cornelian Asset Managers based in Edinburgh also subscribes to these traditional values.

They have launched a fund that aims to invest in traditional properties including Victorian and Georgian properties outside London and the south east. There target price for these properties is around an average of £175,000. They will hold the properties for between 5-7 years and then start to dispose of them into an improving market.

To find our more about the Cornelian Residential Property Fund.

Free property management software, Free tenancy agreements