Castle Trust Housa trackers outperform as house prices grow
Castle Trust has delivered growth of up to 11.2 per cent from its Housa trackers since launch in October 2012, with investors benefiting from a strong housing market.
Housa trackers are a low cost and tax-efficient way to gain exposure to the housing market, as all Housa trackers provide returns directly linked to, and always in excess of, the Halifax House Price Index (HHPI) – whether the HHPI rises or falls.
Since launching in October 2012, the Growth Housa tracker has delivered growth of between 8.3 per cent and 11.2 per cent.
Growth Housa trackers are available for three, five and 10-year terms, and provide investors with 125 per cent - 170 per cent of any increase in the HHPI (depending on the term). The Income Housa, which is also available for three, five and 10-year terms, has returned capital growth of 6.6 per cent in addition to an annual income of between two per cent and three per cent (depending on the term). Unlike property funds, there are no upfront or ongoing management fees.
Improved sentiment on UK house prices has not only increased returns, but has also increased investor appetite, with Castle Trust reporting rising investment inflows quarter on quarter. Housa trackers are eligible for SIPPs, ISAs and Junior ISAs - Castle Trust forecasts investor demand will continue to expand as the ISA season approaches.
Sean Oldfield, chief executive officer at Castle Trust, says: “Residential property is one of the most stable asset classes and, long term, has historically delivered annual returns of about six per cent a year - which is comparable to equities, but with much less volatility. Against cash, gilts and corporate bonds, our Housa trackers now look very attractive indeed.”
The minimum investment in a Housa tracker is just GBP1,000 and investors are eligible for protection by the Financial Services Compensation Scheme of up to GBP50,000 per individual.
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