US property bonds
Vicks,
I know all about the US property bonds including the security of capital and the returns these bonds are offering. If we are talking about the same bond issue the bonds are issued and administered in the UK through Citadel who are an FSA regulated body, they handle all investor monies and issue the bond certificates, and of course pay out any dividends/ interest payments to the investor and also distribute funds to the buyer for purchase of properties in the US.
The returns are both achievable and realistic due to the price these properties are purchased for and the current high rentals they are achieving. It would also be wise of me to point out that just because a property in a US city is cheap it doesn't mean that it is rentable or will ever achieve these returns. For this investment to work the properties must be purchased in Cities and States that currently have strong industry where demand for housing is high a good example would be Tampa in Florida.
The real benefit of these bonds is that it allows an investor to have exposure to the US property market without having the responsibility of becoming a landlord or being subject to US taxes providing you are a non US resident.