London buy-to-let no mortgage for small investors, any thoughts?



New Member
I've been looking at property investments for a while and it seems the only options are:
- stock market related (which I feel are too risky for me right now),
- international (where you really don't know what is going on),or -
- you need to make a big investment in buy-to-let with mortgage risk etc.

Has anyone come across antying suitable for the smaller investor and where there is less risk?

I would have thought that there would be demand for smaller investors to invest £5k - £25k in say a central london property, bought without any mortgage so there is a lot less risk.

The rental yield should deliver c. 4% - 5% per year. This would be much more than a bank savings account and has the potential for long term capital growth as well.

I've not seen anything so looked into setting up a fund myself to see how to ensure the FSA would be happy with it, ie following FSA guidline on collective investment scheme. I work in the invesment management sector and after quite a while came to the conclusion it is complex to set something up that is "by the book" but it is certainly doable.

Before embarking down this route and setting things up, I'm trying to figure out if I missed something that is available, and to see if there is demand.

Would be great to get your thoughts, whether you are an IFA or an investor.


REITs or Real Estate Investment Trusts can be a good opportunity for some one keen to invest in property but does not have the capital to do so. There are often adverts for these in estates gazette or property week