Alternative investments and their advantages
The real estate industry faces significant challenges impacting the returns of open-ended real estate funds (OIF). Experts predict a slight decrease in returns, potentially even negative values, for the year 2024. In this volatile market environment, GLORIUS proves to be a robust and profitable alternative for investors.
Challenges of open real estate funds
Open-ended real estate funds are facing significant value corrections. With a one-year performance shrinking to 0.5% and negative return prospects, many funds are under pressure. Examples such as the Leading Cities Invest by Kanam Grund, which recorded a return of -11.6%, highlight the challenges these funds are encountering. These devaluations are often attributable to late and costly acquisitions.
Stable alternatives
Luxury real estate represents a significant strategy. It not only offers high returns but also provides stable value development, even in volatile markets. Unlike other real estate segments, luxury properties are often less susceptible to drastic devaluations. Investors can benefit from stable rental income and long-term value appreciation associated with high-quality properties.
Another option is the issuance of private loans. These mortgage loans offer investors an attractive source of returns as they are secured by premium real estate. Private loans enable investors to achieve stable and predictable income streams, independent of fluctuations in traditional markets.
GLORIUS allows international investors from around the world to issue loans in the U.S. real estate market, secured by first-rank mortgages, appraisals by licensed independent assessors, and full insurance coverage. This provides international lenders with an attractive investment opportunity with potentially the most favorable risk profile.
Advantages of granting private loans
In addition to high and stable returns, investors have the opportunity to negotiate individual loan parameters. Furthermore, such solutions often offer increased security and transparency, as lenders can independently select the respective properties and scenarios.
While open-ended real estate funds struggle with declining returns, GLORIUS offers a stable and profitable alternative. Through strategic networking and access to exclusive information, investors with GLORIUS can significantly enhance their chances of success and benefit from the best real estate investments.
