In Real Estate Hedge Funds

The most common question asked in our engagement sessions with investors and individuals is – “when should we invest?”. At 33 Holdings, based on our research and logic, we say “now”.

Logic # 1 – The Demands of the Rental Markets

From a high level, the idea of investing in real estate at current prices might seem exorbitant and fraught with risks. Yet, market research and studies have pointed out mitigating circumstances to spend on acquiring such an asset.

Rising appetite for renting single family homes is on the rise, especially given the triple factors – current scarcity of housing availability, the pandemic and its after effects along with the resulting economic climate.

Additionally – the capacity to receive a mortgage to buy a house is shrinking. An increasingly lesser number of Americans are inclined to take up a debt burden. Changing lifestyles has ensued in renting becoming a choice which allows for flexibility.

Logic # 2 – Real Estate is a “Real” Asset

An investment in the real-estate space is akin to acquiring a physical, non-movable and actual asset! It is far more reliable and almost self-assured because that it is an investment in limited supply such as land.

Digital assets like Non-Fungible Tokens (NFTs) and crypto currency are all over the markets. They also come with more than a fair share of cheating, embezzlements and volatility. Such instruments are heavily influenced by the slightest speculations and then appreciate for very short periods, almost unrealistically.

Real estate gives peace of mind, is far more quantifiable and much more stable than any of the modern digital instruments.

Logic # 3 – An Assurance To Offset Price Rise

As a commodity, the cost of housing is sky rocketing. What’s more – it is set to increase even further as time goes by. Anyone who can manage taking up a mortgage to acquire assets in the real estate space, should do so.

The current economic environment has led to inflation going through the roof. It’s also resulting in a decrease of the purchasing power of liquid cash. The time is ripe to use savings collected over the years and invest it in the real estate space.

While a percentage of aspiring investors may feel that even housing is expensive, truth be told, it’s only going to become more prohibitive in the future. Remember – inflation and the consequent price rise only leads to asset acquisition becoming more costly.

Though real estate is the “go to” sector to get some form of capital appreciation, it is equally important to ensure stringent due diligence is performed when an asset is being acquired.

At 33 Holdings, our team  can advise and provide consultation which is most appropriate to your aspirations – we help you choose the best avenue of real estate to help grow your assets.

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