Sourced Capital has highlighted peer-to-peer property lending among viable ‘safe havens’ as investors panic amid the spread of the coronavirus.
Global stock markets have been volatile in response to the coronavirus outbreak and some investors have flocked to the traditionally defensive asset of gold, but P2P property lending platform Sourced Capital noted that other alternative investments have posted better returns.
The platform said that gold has returned five per cent annually on average over the past five years, while you could get 10 per cent returns from a P2P property lending platform.
Additionally, its research found classic cars, rare coins and fine wines have provided annual returns of 16 per cent, 15 per cent and 15 per cent respectively over the past five years, albeit with higher risks.
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“The recent surge in the popularity of gold is likely to be short lived and although it can bring some huge returns, these more volatile options are also prone to huge losses,” Stephen Moss, founder of Sourced Capital, said.
“When it comes to the more stable investment options, the classics such as cars, rare coins and fine wine seem to bring the most consistent returns on a long term basis.
“That said, while bricks and mortar has traditionally been as safe as houses, a Brexit-inspired market slowdown has even seen that drop down the table.
“However, we’ve also seen investment in the property sector evolve as a result with a greater preference to invest via P2P platforms and while capital is always at risk, new age options such as the Innovative Finance ISA have seen many investors average 10 per cent annually through property investment, with some achieving returns as high as 12 per cent.
“Of course, for the professional investor spreading your investments across a number of options not only diversifies your portfolio but mitigates the risk from the more volatile investment classes while allowing you to make the most of the various rates of return available.”