REIFs will be one of the most popular real estate investment instruments in the upcoming period.
The classic understanding in real estate investments in our country is to own an asset that has a regular rental yield, especially in retirement, in the following periods after owning a real estate for use, which can be turned into cash by selling it in difficult times, and is minimally affected by changes in value.
Real Estate Investment Funds (REIF), which are not recognized enough because they are new in this sense, which do not date back to the past, are an alternative investment vehicle that responds to these needs and more. Funds are established by Portfolio Management Companies with the approval of the Capital Markets Board and are reliable and continuously audited structures. In this aspect, it also contains a transparent structure.
Funds allow to liquidate real estate, and there are two ways to invest in the fund. First, the real estate owned or purchased for investment purposes is transferred to the fund and in return, a participation share is taken equal to the value of the real estate. Secondly, the price can be paid in cash and invested in the fund based on the value of the participation share at that time. In both cases, at any time, the required amount of the participation shares can be converted into cash in accordance with the return conditions. In addition, 3 of the participation shares.the investment can also be terminated by transferring it to a person. In term funds, at the end of the period, the assets within the fund are converted into cash and distributed to the investor at the rate of the owned participation share.
Funds make maximum efforts to provide maximum return to their investors, and increasing the return on real estate investment made individually is not possible through personal efforts. However, the funds carry out real estate management in a professional sense and sell real estate with high potential for return, such as land, residence, shopping mall, hospital, school, housing, shop ... at more affordable prices with the high financial strength of the fund and in a more profitable way, and this is reflected as a greater return to fund investors Decently. The fact that the real estate acquired by the fund has a rental yield, so that it determines distributing dividends to its investor from this rental yield as a priority is also an attractive option.
24 Looking at the returns of the Investment Funds established by Real Estate and Venture Capital Portfolio Management in 2020, it is seen that the Portakal Çiçeği Fund provides a return of 50.5% - the A1 Fund provides a return of 42.4% - the Primo Fund provides a return of 36.3%. These yields are well above inflation and mark several times the average deposit, real estate and rental yields.
The modern means of obtaining income without dealing with any operations of real estate is the Real Estate Investment Fund.