Property Funds invests in City
Real Estate is a popular form of savings and more and more companies are taking the capital with fair promises. We provide tips on three smaller options – which means few properties and thus high risk and potential.
Property invests in commercial real estate and provides a structured product called equity evidence. It should be noted on the derivatives exchange or shortly thereafter. The former ended investment states to become 20 percent annual return. Its annual interest rate is 6.25 percent plus 75 percent of the gain on the settlement in 2019, but 100 percent of the loss for the company.
The investment group taking in capital 10 million to Development. The company is reported to be close to fully subscribed and the minimum investment is 300 000. Capital will go to build and sell four semi-detached house. The investment consists of both shares and shareholder loans, the return is limited to the shareholder loan’s annual interest rate of 15 per cent of the total capital invested. Investment horizon is one to two years.
Real estate fund focuses on fast-growing Panama City. Primarily, it is the equivalent condominiums purchased and rented, which is expected to give ordinary shares a dividend yield of 4-7 percent annually. The preference share will yield 7 percent yield, but no exposure to a potential change in value of the properties. The investment horizon is five to seven years. Ordinary shares may be subscribed to and including 1 april, while preference shares can be subscribed to 15 april.
For most small investors listed companies gives better risk diversification and good second-hand market. Listed shares are best for most, but the smaller of the above options have greater potential if all goes well.
- Of course it is great to achieve a volume of this size, we interpret it as a sign that our long-term work with quality, excellence and further development of the service given return, says a broker.
There are many factors in the market behind the large volume of sales. The long winter has postponed sales of late spring and early summer with many properties for sale at the same time as a result. Wood shortage for the country’s forest industries provide higher prices of timber, which in turn affect and support prices for forest properties. Although the prices of areable land continues and the trend is still upward. A continued record low interest rates also play a big role and affects the interest in the real estate market. Meanwhile, a large generation where a high average age of the property owners and a negative trend among the young to take over, means that the number of items on the open market gradually increases. The consequences can be briefly described as supply and demand come much closer together than before.
Despite this, we feel that it is not difficult to sell and often there are multiple bidders on each item. The difference in interest between attractive and less attractive items has increased, which is linked to the large supply.
- We believe that the high pressure on the property market will continue in the fall. Many of our brokers have already started planning and working with upcoming sales, says a real estate agent.