Bang estate...
Closed-end mutual fund of real estate is now one of the most stable, effective and promising forms of organization of long-term projects related to the decision-intensive tasks, with the involvement and investment management and external investors.
Since all funds that invest in real estate are closed. There are several reasons:
- Real estate investment is usually successful after a fairly long period of time: the object need to plan, build and sell, and it takes time. Therefore, shareholders CUIT real estate is not allowed to withdraw funds invested until the expiration of the fund, because such actions may interfere with construction and cause harm to other shareholders.
- Number of units is limited. After the sale of fund shares, additional primary investments are not possible.
Currently legally distinguish three types of real estate funds:
CUIT rental;
CUIT real estate;
CUIT properties to qualified investors.
Rental real estate mutual funds (rental REIT) formed to manage commercial real estate and receive regular income from the rental of premises. Shareholders rental REIT - real estate mutual funds receive an annual income on the investment units.
Since all funds that invest in real estate are closed. There are several reasons:
- Real estate investment is usually successful after a fairly long period of time: the object need to plan, build and sell, and it takes time. Therefore, shareholders CUIT real estate is not allowed to withdraw funds invested until the expiration of the fund, because such actions may interfere with construction and cause harm to other shareholders.
- Number of units is limited. After the sale of fund shares, additional primary investments are not possible.
Currently legally distinguish three types of real estate funds:
CUIT rental;
CUIT real estate;
CUIT properties to qualified investors.
Rental real estate mutual funds (rental REIT) formed to manage commercial real estate and receive regular income from the rental of premises. Shareholders rental REIT - real estate mutual funds receive an annual income on the investment units.
Two years ago, a lawmaker has introduced Institute of qualifiedinvestors, ie individuals experience and qualifications which allowthem to adequately assess the risks associated with collectiveinvestment.
In managing the fund, which shareholders can only be qualifiedinvestors, the management company provides a great opportunityfor investment. In particular, it is a REIT for qualified investors cancarry out construction and renovation of the property. These funds are called the developer.
Construction Real Estate Mutual Funds are the most attractive inthis kind of mutual funds as investments in housing have high rates of return. Yield is composed of two components: the growth indexfor home prices and increasing price of the object as its construction. In addition, in the real estate sector are guaranteedever-increasing demand from investors.
In managing the fund, which shareholders can only be qualifiedinvestors, the management company provides a great opportunityfor investment. In particular, it is a REIT for qualified investors cancarry out construction and renovation of the property. These funds are called the developer.
Construction Real Estate Mutual Funds are the most attractive inthis kind of mutual funds as investments in housing have high rates of return. Yield is composed of two components: the growth indexfor home prices and increasing price of the object as its construction. In addition, in the real estate sector are guaranteedever-increasing demand from investors.
