Why invest through a fund vs. buying properties directly?

One of the benefits of the Fund’s residential investment strategies is its ability to target countries at different stages of their investment cycle. Furthermore, it is reasonable to argue that strong economies generally feed through to strong growth in residential property prices. Favourable interest rates, low inflation, rising incomes and low unemployment are usually key factors which drive residential property prices. Other aspects like demographic or social change also play an important role.

Investment in the Fund is intended to provide investors with a properly diversified exposure to Central European residential property markets. It also provides greater liquidity than direct ownership and expert management of the Fund’s assets.

Diversification and Economies of Scale

Investors have their risks and fixed costs spread out through many properties.

Get Developer Level Returns

Property development is far more complex and risky than the average individual is capable of dealing with. Consequently the high development profits and rewords are out of reach for most people. CEREFunds works with experienced developers to get in at the most potentially profitable stage of property investment making the higher returns available to investors with little or no experience in property development.

Elimination of Property Management and Marketing Issues

Investors do not deal with broken pipes and surly tenants. A Fund has trained in-house maintenance and marketing teams to keep properties in good repair and filled with quality tenants.

Professional Acquisition Team

A fund leverages superior market knowledge and a disciplined, objective approach to acquisitions.

More Buying Power

A fund buys many properties at once from a developer and is able to negotiate substantial discounts over what any individual could achieve. Strong cash positions enable quick action on bargains and achieve further discounts from payment terms.

Tax Efficiency

A fund is professionally structured offshore with special purpose financing vehicles that serve to legally reduce the taxable income base of properties. Such structures are complex and beyond the means of most property investors.