Housa investors earn 3.1 per cent growth in first month
Investors in Castle Trust’s Protected Housa investment product have seen capital growth of 3.1 per cent in the first month since launch as the Halifax House Price Index recorded the fastest monthly increase since October 2007.
Average house prices rose 3.1 per cent in February and are now 10.1 per cent higher than in February 2013, according to Halifax, underlining the benefits for savers of residential property investment ahead of the ISA season.
That investment story is already resonating with investors – Castle Trust saw record inflows into its range of growth and income investment products in February building on strong ongoing demand.
The newly-launched Protected Housa, a pure growth investment, tracks any rise in the HHPI during its five year term as well as returning 100 per cent of the original investment to savers in the event of the index being lower after five years, has returned 3.1 per cent after just a month.
Investors across Castle Trust’s range of products are also benefiting - since launching in October 2012, the Growth Housas have delivered growth of between 16.8 per cent and 19.0 per cent. Growth Housas are available for five and 10 year terms and provide investors with either 150 per cent (five year) or 170 per cent (10 year) of any increase in the HHPI. The Income Housa, which is available for three, five and 10 year terms, has delivered capital growth of 11.2 per cent in addition to an annual income of between two per cent and three per cent.
All Housas qualify for inclusion as an ISA, Junior ISA or SIPP with a minimum investment of GBP1,000. Investors are eligible for protection by the Financial Services Compensation Scheme of up to GBP50,000 per individual.
Sean Oldfield, chief executive of Castle Trust, says: “the February increase in the Halifax House Price Index is eye-catching but is very consistent with an established trend which began in late 2012. Our product range is ideal for cautious investors who want to increase their exposure to the housing market without going to the expense and hassle of buying property.”
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