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Asian ‘REIT’ Markets / Home / What Are ‘Ground Rent Funds’
As a lot of things in life, balance is the key and the easiest thing to attain. There is a resonance in lots of areas of our life where ‘reward is com¬men¬su¬rate with risk’. Possible the finest quote in terms of finance when relat¬ed to the invest¬ment strategies. The balancing process of making a low risk income that significantly and consistently outperforms money deposits is one which a multiple finance man¬agers have fought ever since the phrase ‘prices can go down as well as up’.
The concept ‘high risk, high income’ coupled with the ‘low risk, low income’ phrase is filled with a lot of investment vehicles not providing much in between. Right now, we will focus on 2 invest¬ment vehicles which use ‘out of the ordinary’ funds providing not only lessen risk but also attractive incomes while also letting you to improve your invest¬ment position away from all the volatilities of equity related products.
The first investment vehicle is based on a con¬cept called a ‘ground rent fund’. What exactly are ground rents? A ‘ground rent’ is created once a freehold asset is put up for sale on an extensive lease, either separated as a solo house or as flats. In the earlier period, the establishment of a ‘ground rent’ on land offered profits to the property owner, whereas the builder could lease the property to construct a home and then put up for sale after completion. Unfortunately, price rises has grind down the cost of most ‘ground rents’ with lengthy leases and decreasing incomes, as a result the cost of property owner freehold interest's wherever there is thumbs down vision of a deterioration in 150 years. |
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