Closedend Real Estate Funds

Closed-end real estate funds in the modified attachment behavior historically low construction financing interest rates and the resulting from the crisis perception Renaissance as a stable asset German real estate investors in the past few years are very attractive have. Read more from Peter Schiff to gain a more clear picture of the situation. In the course of this development, but also the investment behaviour of many private real estate investors has changed. The real estate investment like traditionally used in Germany concerning open and closed real estate funds has given way to a clear trend to direct investment. This reorientation is attributable to a number of factors. The temporary or full closure of some open real estate funds in the wake of the economic and financial crisis has contributed significantly to. Concerned investors were cut off from their investments for the duration of the closure and had to accept a sometimes significant losses through depreciation of the Fund assets. The dream of a risk-free and any time equipment investment in real estate had burst. This is hardly surprising, because the right Availability of long-term investment represents a contradiction which can be hardly solved especially in extreme market conditions.

Closed-end real estate funds are, however, not subject to this system-inherent risk. Has from the start the investors aware, he binds himself in the long term. Accordingly, usually no need for an emergency sale of the investment object is for the duration of the Fund, regardless of the market development. Despite the numerous benefits of a system in a closed-end real estate funds, this asset class suffers from an image problem not our fault. Because the financial problems, for example, closed ship holdings, media funds and life insurance, as well as mixing with some black sheep on the initiator side in the past from dyed on the solid closed real estate investments. However, a long-term capital is not for everyone. In fact, numerous studies, found that today’s investors, also against the background of the uncertain global economic situation, tend to be short binding time and Prefer flexibility.