Unqualified investors who will invest in a closed-end mutual investment fund (ZPIF) of residential real estate, which is new to the Russian market, should be very careful, as they must be sure of receiving the promised yield. This was announced to Izvestia by Alexander Shibaev, director of the consulting and analytics department of the Kalinka Group elite real estate agency, on Tuesday, April 27th.
According to him, in order to guarantee the promised profitability to investors, the management company must have “a huge range of competencies in market analysis and identification of undervalued apartments” that can be sold “with the required profitability” and in a short time.
Earlier on the same day, the Realist company reported to the media about the creation, together with the East-West management company, of a rare for the Russian market ZPIF of residential real estate. It was noted that the shareholders’ money will be invested in housing from the secondary market of the Moscow region, and Realist will be engaged in the selection of objects. The fund will focus on “killed” apartments, which are offered at a discount to the market price of 5-12%. They will be repaired and then resold at a profit.
Even unqualified investors can join the fund, the minimum entry threshold is 1 million rubles.
Shibaeva added that when choosing such apartments, you need to pay attention to how they are sold below the market: there may be problems with documents or some other encumbrances.
“This is truly a new investment product. The previous profitability from investments in new buildings has decreased against the background of the use of escrow accounts by developers and there is a need for new investment products, ”the analyst emphasized.
The fund will operate for five years. During this time, investors can claim a yield of 15% – the figure already takes into account hedging (insurance) of currency risks and the dollar at 76 rubles.