Two new vehicles enabling investors to trade units in residential property are being launched this week.
Fund manager Arc Fund Management says it is aiming to raise £30m by the end of 2005 in its new European Open-Ended Investment Company fund, which will invest in overseas European residential property.
The fund, which is advised by Savills, plans to invest 30% of its cash in completed properties for rent and 50% on developments under construction to be sold on. At least 20% of assets will be kept in cash to ensure liquidity.
With a minimum investment of £5,000, Arc says the fund will enable more people to enjoy the high returns promised by the buy-to-let market, which Arc says will be 8% or more pa over the medium term.
Meanwhile, internet exchange specialists Stephen Kenny and Andrew Black and foreign exchange brokerage expert Derek Tullett launched an internet-based exchange for trading shares in individual houses and flats.
Working on the same basis as trading shares, the exchange allows investors to buy shares in UK houses and flats over the internet, with a minimum investment of £1 and commission charges of 0.5-3%.
