Freehold Ground Rents
Not a lot of people will know that you can invest in freehold ground rents. Most of us will have paid a ground rent to our freeholder at the end of each year if we owned a flat that is, but not many people will have actually invested their money in buying these types of investments.
They are becoming increasingly popular amongst property investment companies as they generally offer a good return on the money invested and you can more or less guarantee that your ground rent will be paid each year. If you purchase the freehold of a building you will be the person that receives the ground rent income each year. If you decide that you want to try to manage the property yourself (good luck) you will normally be able to charge your lessee a fee for doing so but be warned you will have to deal with the day-to-day running of the block and be on call for any emergencies that need tending to.
Most investors simply just want to collect the ground rent each year without dealing with the management of the building and therefore instruct a management company to look after the building. As a general rule ground rents are paying a return of between 5% – 7% so whilst interest rates are this low they may be worth having a look into. I will be updating this blog regularly but if in the meantime you have a ground rent to sell please visit my site at Ground Rents for Sale