An Asset-Backed Fund involves investing in tangible or corporate assets, such as property or shares, providing potential growth aligned with inflation, in contrast to traditional bank savings.
Detailed overview of investment properties, including definitions, examples, FAQs, related terms, and resources for further study.
Real estate refers to fixed objects that serve as a boundary mark for a tract of land. It includes immoveable property such as land and buildings, along with the natural resources like water, minerals, and crops that are attached to it.
A Real Estate Investment Trust (REIT) is a company resident in the UK that owns at least three properties let to third parties and distributes at least 90% of its profits to shareholders. REITs are exempt from UK corporation tax, and distributions are taxed as rental income to shareholders.
Secondary financing refers to additional loans or mortgages taken out on a property that already has an existing or primary mortgage. This type of financing is often used to cover down payments, renovations, or other expenses.
A Single Property Ownership Trust (SPOT) allows investors to own shares in a specific property, entitling them to a direct share of the property's income and capital. This forms part of a securitization process and is similar to a Property Investment Certificate (PINC).
A spec house is a single-family dwelling constructed by a builder or developer in anticipation of finding a buyer. It is built speculative, without having a specific buyer signed before construction starts.
