Peer-to-peer property lending
This gives direct, opportunity-by-opportunity exposure to specific loans and their security, decided individually rather than pooled.
Listed property or mortgage funds
These are pooled and generally more liquid, with risk and return spread across many holdings and less visibility into any single underlying loan.
Managed property funds
These are professionally managed and pooled, typically with less individual visibility into specific loans or properties, and management fees apply.
How they differ
The main differences are liquidity, visibility and control over individual decisions, typical minimum entry, and risk concentration. Peer-to-peer lending is less liquid because funds are committed for the loan term, but offers more visibility into each specific loan and its security.
Where peer-to-peer property lending fits
It can suit someone who wants to choose individual opportunities and see the specific security behind each one, in exchange for less liquidity since funds are committed for the loan term. This is not a recommendation of one approach over another. Lending involves risk, including capital loss.
