Timing opportunities in market cycles is paramount for managing effective wealth creation. One should consider it as an industry cycle or sectoral rotation or the socio-economic conditions impact. It is a factor which could influence the scope and scale at which private equity investment decisions are made or deferred.
In the emerging economic scenarios and recession shadow onset, the scope of sectoral rotation or shift in the proposition of private equity investments into the other sectors looks imminent. Private equity investments in real-estate have many success stories across decades of investment practices and wealth creation.
“The best investment on Earth is earth.” – Louis Glickman, Real Estate Investor
For some, this stands as a fascinating quote, but the experiences and insights into how real-estate investments stand a great potential for wealth creation basis the real estate investment funds need no fresh hypothesis testing.
Private equity real estate is an alternative asset class managed by professional investment fund companies focusing on real estate investments.
The real-estate investment funds constitute the scope of pooled private and public investments, timed for real-estate property developments, and real-estate infrastructure projects.
Technically, private equity investments are different from equity real estate investment trusts or equity REITs (the publicly traded shares from real-estate investments). Private equity real estate funds are predominantly for high-profile investments into real-estate wealth building wherein the objective is to manage a diversified approach to property ownership.
For years, passive income from real estate has been a consistent and risk adjusted yield on investments which has augmented wealth creation, irrespective of the economic conditions, inflation, and the dynamics of real-estate development. One of the new age developments in real-estate wealth building is the “build-to-rent” model of real estate investment.
In the “build-to-rent” structure, the private equity investments into the real-estate funds are predominantly used for developing residential properties, and redevelopment of residential properties profoundly aimed at renting out to tenants.
With the increasing recurring income from the capital investments, and hardly any maintenance costs for the investors, the quantum of investments as private equity investments in real estate shall stand truly an effective real-estate wealth building.
The key dynamics of the build-to-rent structure is the developers build and manage the properties for renting out as affordable housing solutions for millions of people looking for housing options. With the onset recession scenario, the demand for build-to-rent properties is high, and real estate investment funds are bound to yield good returns and effective wealth creation opportunities.
The crux for success in emerging opportunities is to choose a private equity real estate investment firm working on a range of contemporary real estate investment funds.
At 33 Holdings, our seasoned investment management professionals and fund managers study and analyze decades of market phases and investment cycles with a close eye on real-estate investment.
The diligence of the process integrated with technology aided data crunching helps in identifying the most rewarding entry point of investments to be made across a wide basket of assets to realise passive income, a true form of real-estate wealth building.
Engage with our investment relations team for more on real estate investment funds for wealth creation and passive income generation.