23.06.2010

Real estate investments are good for any assets

This particularly applies to investors who do not own their own house or their own apartment, since investments in Swiss real estate have a number of advantages.

• They reduce the risk of a portfolio which consists of securities such as equities and bonds.
• They provide stable earnings thanks to regular distributions.
• Unlike other real estate markets, the Swiss real estate market has not seen the formation of a bubble during the last few years, but rather a steady price development. Therefore, massive corrections are not to be expected.
• The clearly limited living space in our country should continue to have a supportive effect on prices.
   

In order to share in the continuous value development of the Swiss real estate market, it is advantageous for private investors to invest in real estate funds. These are usually clearly focused on residential or commercial properties and achieve a stable rental income. These funds are attractive for the following reasons:

• When viewed historically, the overall yield (distribution and increase in value) of Swiss real estate funds is somewhere between the yields from investments in equities and bonds. This was an average of around 6% per year over the last 30 years.
• The value development of real estate funds does not run in step with, for example, that of equities or bonds. By combining real estate funds with investments in equities and bonds in a portfolio, investors can ensure better diversification and thereby reduce the risk of loss.
• Swiss real estate funds are liquid investments, since fund units can usually be bought and sold on the stock market.

Further information

• Real estate investments – investing in property without owning your own home.
• I would like to receive advice about the investment opportunities of real estate funds in a personal discussion.
• General information about Swisscanto's real estate solutions.

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