Investors Are Tempted By Property Funds But Are They Too Risky?

Gill Alton Expert Property AuthorA recent wave of start-up investment products which fluctuate with property prices (national or local) has been met with scepticism from industry experts who have reservations about the risks involved.

Although I’m an advocate of investing in property to boost your pension, my focus is very much on purchasing for cash flow and holding long term in your own name.

When you purchase your own buy-to-let property you can do your own due diligence, you can control the spend, you can control the tenants and most importantly you can benefit from the monthly cash flow into your pocket each month. Buying for cash flow is of paramount importance, as this negates the need for you to worry about the underlying house price.

When you invest in a Property Fund, unfortunately the one person who never loses is the Fund Manager as they take their fees whatever the performance. Most funds are focussed purely on capital growth with Danny Cox of Hargreaves Lansdowne saying ‘Liquidity in pension investments is very important as people approach retirement’.

If your focus is purely on Capital Growth then this comment made by Mr Cox is relevant.

There is no doubting that Property is far less liquid than shares, but ‘Buying and Holding’ a property portfolio long term into your retirement which produces cash flow for you each month will remove the need for you to sell to achieve the income you require.

Remember if you hold a house in your own name it isn’t a fund where someone else is in charge and your money is not pooled with others. The rental income from your property can be your pension.

Property Funds are not a diversification out of the stock market, they are simply a different flavour of the same. Although the entry level into holding your own buy-to-let Property is indeed higher there is always the opportunity to leverage equity from within your own home and money from a Bank to help you build your pension pot, an option that isn’t open to you if you stick just to shares.

To talk to me about investing in property for cash flow and for a more comfortable retirement, contact me today.

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

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