Limited liquidity and fearing loss of rent deterred many people interested in the acquisition of foreign real estate investments in closed-end real estate funds as about the SHB funds, offer themselves as a strong alternative to some insurance companies, special policies against rental nomads recently offered apartment landlords. Replace at least a short-term loss of rent and in some cases also the costs of remediation. A market clearly exists, because it is estimated that every year about 15,000 cases cause average losses of 25,000 euros each. The dream of the good yield with rented real estate property can be so quickly into a nightmare. Center for Responsible Business is often quoted on this topic. “But in danger not only of payment recalcitrant tenants, explains Hans Gruber, real estate expert of SHB innovative fund concepts AG (SHB AG): attracted by low interest real estate loans, many home buyers in a financing, which he can no longer shoulder due to lack of equity already in term stumbles.” Many inventory objects like though due to their outer appearances in the spell of pull and lead to quick buying decisions. But not infrequently is overrated behind infectious structures and a possibly existing refurbishment needs not detected, or simply underestimated.
“The SHB real estate fund expert describes the impending consequences: then the apartment owner does not have the necessary liquidity, an unforeseen renovation or repair expenses can cost many thousand euros it, that he must in turn borrow at high interest rates at a bank.” The desired rental yield pulverize themselves then formally. Yet”, so Hans Gruber, too little equity must stop anyone from the acquisition of real estate.” Investments in closed-end real estate funds are already available for manageable amounts. And with one in regard to the current market conditions not high enough to estimated a flexibility. The concept of SHB innovative fund concepts AG (SHB AG), for example, stipulates that only the initial investment is specifically made in any new funds. All other objects in the respective SHB funds implemented depending on result of the actual volume of the Fund and the current market situation. “Hans Gruber explains that the advantage: the Fund volume can be adjusted so any variable and fund management depending on the placement of capital and the development of the initial investment respond.” Beneficial to the SHB funds is that they all invest not in living but in commercial real estate, because the latter market is not so overheated as the private sector. The current offer price index IMX ImmobilienScout24 has just revealed how it currently is in residential real estate. Then, existing buildings in Munich have risen in the first quarter of 2012 by 5.4 per cent and in Berlin by 4.9 percent. More than the 30 times a year rent to be paid sometimes for luxury apartments.