What is a property bond by Anton Tardif

1. What is a
Property Bond?

2. Risk Warning: Castle Keep Bonds are provided on a non-advised sales basis only. Castle Keep will not advise or make any recommendation on the merits of this offer. The content of this brochure has not
been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this any promotion from Castle Keep for the purpose of engaging in any investment
activity may expose an individual to a significant risk of losing all of the property or other assets invested. Clients will be provided with the offering document from Castle Keep only and must make their own
investment decisions and/or seek independent advice. Past performance is no guarantee of future results.
Property bonds are a great vehicle for property
investment. However, investing in something that
you do not fully understand is not only daunting but
ill-advisable. For that reason we have put together
this easy-to-use guide to help you fully understand
property bonds and allow you to make an informed
decision about whether or not they will meet your
investment goals.
What is a bond?
Put simply a bond is a type of secured loan agreement.
An investor ‘loans’ a sum of money to the bond issuing
company in return for a pre-arranged benefit. The
company then use the funds to expand their business and
the profits from the business are then used to repay the
bond holders according to the agreed bond conditions.
In the case of property bonds, the bond issuing company
use the money to purchase and renovate property before
selling it on or renting it out. While each individual bond
varies in its structure, the majority of bonds are repaid
after a fixed length of time along with a pre-arranged
percentage profit on top.
Why would you not just
invest in property yourself?
Property bonds allow investors to gain exposure to
the property market which is easily accessible to most
investors anyway. However, investing in property through
a property bond has a number of key advantages which
make it appealing to a number of investors:
99 It spreads the risk – As you are investing with a bond
issuing company, your investment is spread across
a number of different properties and geographies
meaning that falling house prices in one location will
not affect your returns.
99 It is a completely hands off investment – Purchasing
and renovating property for resale is a long and
involved business and requires a certain amount
of knowledge and experience if you are going to be
successful. Property bonds do not require you to do
anything once you have invested, making them one
of the most low maintenance investment options.
99 It lowers the costs – Bond issuing companies buy
a large number of properties over the months and
years which means that they can get properties
at prices lower than those on the open market.
In addition, companies can bulk buy materials for
renovation meaning that savings can be made here
as well.
99 You have guaranteed returns – The bond issuing
company are bound by law to meet the terms of the
bond. This means that you don’t have to worry about
what you will or will not make from your investment.
99 Itopensnewmarkets–Buyingapropertybondallows
you access to foreign property markets without the
need to manage it from abroad.
Castle Keep’s property bond is focused on US real estate
which is currently seeing steady growth due to the
country’s recovery and a number of other socio-economic
factors. While US property is widely seen as an attractive
market to invest in, property investment from abroad is
a very tricky business. Foreign owners of US properties
need to:
99 Register for and pay US tax on rental income
99 Pay property tax
99 Pay HOA fees (if applicable)
99 Set aside rental income to cover the future voids,
maintenance and renovations
None of this is necessary however if you are investing
in the US property market through a property bond
purchase.

3. Risk Warning: Castle Keep Bonds are provided on a non-advised sales basis only. Castle Keep will not advise or make any recommendation on the merits of this offer. The content of this brochure has not
been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this any promotion from Castle Keep for the purpose of engaging in any investment
activity may expose an individual to a significant risk of losing all of the property or other assets invested. Clients will be provided with the offering document from Castle Keep only and must make their own
investment decisions and/or seek independent advice. Past performance is no guarantee of future results.
How secure are bonds?
Bond issuing companies are obligated to hold investor
funds against tangible assets and have a large number
of processes and procedures in place to protect investor
funds. Bonds have a number of similarities to stocks
however, the major difference is that stocks are an equity
stake in the company whereas bondholders have a
creditor stake in the company (i.e. they are lenders). Being
a creditor means that bondholders have priority and will
be repaid before stockholders in the event of bankruptcy.
All of this means that investing in bonds is incredibly
secure. It is this security that lures so many investors away
from stocks and from investing in property themselves.
Any experienced investor can easily find out the yields
available through property investment, but they will then
be at the mercy of the market. Investing in bonds means
that you are guaranteed the returns stated in the terms
of the bond.
Key points of Castle Keep’s
property bonds:
99 Bonds are hands off investments. Once you
have invested your money, there are no other
considerations and nothing more to be done except
collect your returns.
99 There is no need to register for, file or pay US taxes
99 Gain access to a booming US property market with a
quick and simple investment option
99 Achieve definite, guaranteed returns as set out in the
terms of the bond
99 Receive twice yearly interest payments
99 Low risk investment option
99 Invest in property for a very low initial outlay
99 Receive higher yields through access to lower cost
housing and renovation materials
To invest, please contact
Castle Keep
71-75 Shelton Street
Covent Garden
London, WC2H 9JQ
Tel: +44 0207 030 3227
Email: info@castle-keep.com