Some gain without the pain

For landlords that are looking at the potential gain from a resurgent housing market without the pain associated with being a landlord and managing propertises ; two former building societies are offering structured investment products that may appeal.

Abbey and Britannia Building Society have launched bonds offering 50% of the growth in the Halifax house price index according to website This is Money

The 'guaranteed equity bonds', which are complex structured products, safeguard investors' original deposits and offer a minimum payment, or the stated growth in the index.

These products may offer a way in for investors convinced that property is undervalued and will continue to surge over the next 3-5 years.

Call me greedy but I would want much more than 50% of the uplift in values than these products promise for tying my money up. The other downside of these products is that a landlord does not get the potential upside from gearing their investment should they use loan to finance a purchase.

They do opposite a minimum guaranteed return so that at least a landlord is guaranteed not to lose. They might be worth considering if you are a cautious investor.

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