With U.S. equity markets at historical highs and many bonds offering minuscule returns, where can high-net-worth investors turn for income, particularly as so many move into retirement?
Investing in U.S and global real estate previously meant investing in the actual properties—a prospect mostly available to institutional and accredited investors. Today, the asset class is becoming more broadly available to high net worth individuals through new private equity funds. While requiring a long-term commitment from investors, these funds seek to capitalize on favorable real estate market conditions, with some featuring monthly or quarterly liquidity.
Real estate has proven to be a successful asset class, with a 9.7 percent 20-year annualized total return as of the second quarter 2017 (based on data from the NCREIF Property Index, or NPI). That this encompasses the global financial crisis and subsequent real estate slump makes the overall track record even more impressive.
There are five primary reasons to invest in private equity real estate funds: (Read More on National Real Estate Investor)
SMARTEST Wealth Systems recommends: