2 minute read
Property-Backed Investments Provide Tangible Returns in Volatile Times
With stock markets down, crypto declines, high inflation and low term deposits – Zagga provides another option in challenging market times.
Finding reliable returns at an acceptable risk level is always a challenge, but right now it’s more difficult than ever. Share markets have been in decline, term deposit rates remain modest and inflation is eroding the value of savings – so this is a great time to look around at other investment options, and Zagga should definitely be on your list for consideration. Zagga provides strong returns, backed by property. Because it has a relatively short timeframe and fixed returns, a Zagga investment can balance out long-term asset classes like shares – and add diversification to your portfolio.
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How do Zagga investments work?
Zagga is an online platform that matches up investors with creditworthy borrowers. Borrowers apply for a property or commercial loan, and Zagga investors who like the look of the loan each contribute to funding it: from as little as $1000 up to the full loan amount, across any number of available loans. Every loan is secured by a first mortgage over the borrower’s property, either residential or commercial. This is the same type of security a bank would hold, giving investors a tangible asset to recover funds in the case of any default by a borrower.
Each loan/investment is also fully transparent, meaning a summary, full credit checks, and valuations and information on the security is available on every loan. “Our clients like the fact that the underlying security of the loans is property or land,” says Stephen Crerar, CEO at Zagga. “The average LVR on these properties is 54 per cent, with returns of around 8 to 10 per cent per annum on current investment opportunities. The timeframe is comparable to a term deposit, from six months up to two years but with higher returns.” Zagga investments can work well as part of a diversified portfolio. They are a short-term financial product, matched by strong reliable returns. With monthly interest payments, Zagga works well for those investors looking to generate or supplement an income.
New secondary market launched
Zagga has also recently launched a secondary market, so investors can have more control over their funds if they suddenly need their cash out. An investor who has put money into a Zagga investment can now ‘sell’ their investment early in the term to another investor via the Zagga platform’s new secondary market. “Now that we have this secondary market, giving investors additional liquidity, we’ve added increased flexibility and confidence for investors,” says Stephen. Although, he adds, the company’s track record is already very strong: “Zagga has loaned more than $130 million to date, and so far no investor has yet lost any principal – I think that track record should help give investors some confidence.”
