Not all the property need much time and management to make them a smart source of return. For example, school and college rentals and investment in inferior properties in bad areas are the property which needs more attention while a good relation with your tenant reduces your difficulty in this regard.
High Yielding Russian Real Estate Security:
A person holding real estate security always feel more confident and positive as compared to a person holding stocks or bonds. Investment in equity and stocks are risky, while real estate investment trust has declared an assured minimum percentage of profits to its holder, as dividends.
Investment in real estate offers you a smart and attractive return. If you will hold a property in the main town of Russia like Moscow, Novosibirsk or Samara, then you can definitely gain a very good return soon.
You will be assured about the significant stable return on investment, in the form of rental income for a long period of time. When compared to other traditional methods of income return, real estate gives you an attractive return. Mostly this asset class trades at a yield premium when the treasury rates are low.
Yes, this real estate investment has one more feature as inflation hedging. It has a direct variation between GDP growth and demand for the real estate. The demand for real estate will cause the rent increase, which in turn enhances the capital value. Thus real estate to some extent maintain the purchasing power of the capital by implementing extra financial pressure in terms of increased rent.
Thus, you can say that Real estate is a typical distinct type of asset class which is simple to identify. It increases the return with an increased risk. Here proper Financial Analysis and portfolio management is required to get a steady and an attractive return with a possible minimum risk. It offers you an adjusted risk and return for the best utilisation of your money invested. Another benefit here is that you can increase your total return and decrease your per unit risk with the addition of any new investment units.