Home Alternative Investments Mortgages gain ground with investors

Mortgages gain ground with investors


Alternative investments in private debt rising in popularity.

Investors are seeking alternative investment opportunities as stagnant property returns, share market volatility and inflationary concerns mount, according to a New Zealand-based asset management company which says it is leading the way in providing conservative investment opportunities with attractive returns.

Pernell Callaghan, Managing Director of Finbase, says private debt has gained popularity over recent years. Property investment continues to be popular for many Kiwis and first-time investors, but he sees larger wholesale and more experienced property investors selling down portfolios of residential and commercial properties to invest in secured debt instead.

“Private debt has seen lower volatility and significantly higher cash yields than its more traditional investment asset class counterparts,” he says. “This was evident in 2022, when the market saw rising interest rates, and by comparison, alternative asset classes showed positive results.


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“The property market’s volatility and continuous regulatory changes can leave investors anxious and frustrated, wondering if or even when their investments will return a positive yield.”

Callaghan, an experienced investment portfolio manager, says the New Zealand investment market has witnessed a notable shift towards these alternative asset classes as investors diversify portfolios, recognising the benefits of non-traditional assets.

Despite New Zealand’s stock market showing a substantial year-to-date gain, the spectre of a global economic downturn lingers. In response to these uncertainties, Finbase facilitates alternative options to safeguard portfolios against market turbulence.

“In the realm of investment, consideration of prevailing interest rates is a priority,” says Callaghan. “By offering short loan terms, we position our investors to harness higher-yielding opportunities should interest rates surge.”

Finbase currently offers investors a fixed return of 11 per cent p.a., secured by first mortgage against New Zealand property at a conservative loan to value ratio.

“We understand that investors are not just seeking security, they are also in pursuit of returns – so striking the right balance between security and returns is a priority.”

In addition to the attractive interest return, Finbase’s monthly payment system ensures a consistent income stream, a critical difference that benefits individuals, particularly retirees.

“It is important to emphasise risk awareness when considering alternative investment opportunities,” he says. “While we take measures to secure our investors’ capital and have a track record of zero losses, it’s crucial to acknowledge that all investments carry inherent risks.


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“Understanding and managing these risks is paramount for informed decision-making in alternative investments.”

Finbase maintains a strict policy of not lending more than 60 per cent of a property’s value to mitigate these risks. In addition to the first ranking mortgage on the property, the business takes additional security over the borrower, providing an added layer of protection.

Trust and reliability are paramount in the world of investments. Investors need to have complete confidence in their chosen financial partner, with a lack of trust leading to hesitancy and missed opportunities. Finbase claim they have never missed an investor interest payment, and equally significantly, never suffered a loss of investor capital.

As Kiwi investors continue to unlock the potential of alternative avenues, Finbase is a trusted partner, empowering investors to navigate this market with confidence and resilience.If you are an investor seeking alternative opportunities, Finbase enables you to achieve financial freedom, transforming how financial goals are pursued and achieved in this dynamic market.

For more information visit: finbase.nz

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