Investing in property is no longer an open secret; it is even recommended as a way of diversifying your investments in Switzerland and boosting your returns.
However, you need to consider the return on your investment. That’s why it’s important to diversify your investments to cope with volatile markets and keep your portfolio profitable.
At SIPA Crowd Immo, our customers have the opportunity to diversify their investments by investing in income-producing properties, thereby realising substantial capital gains.
You will no doubt be familiar with our property crowdfunding formula, known as participative property ownership.
You become co-owner of a fraction of a building (note that this drastically reduces the risks) and take a share in the capital of a company. You’ll have easy access to property ownership and benefit from attractive, regular returns.
Our theory is therefore perfectly in line with that of Nobel Prize-winning economist Harry Max Markowitz, and supports the effort to diversify your investments to offset any losses.
So, in a more expert way, opt for less cross-correlated investments to give meaning to the diversification of your investments.
At SIPA Crowd Immo, we are very proud to offer our institutional and private investors exceptional yielding properties!
So diversifying is a good idea, but not just any old way.
In this article, we will discuss several elements that need to be diversified, as well as the concept of a property portfolio. This is represented by all the physical assets, financial investments, and real estate securities held by a natural person, legal entity, or institution.
If the aim is to generate income over the long term, a specialist company needs to know the property market in which it operates and be able to deal with the laws and legislation that surround it.
Diversification is often associated with spreading your funds over several stocks or bonds. But if diversification consisted solely of taking a handful of different shares instead of just one, the return on investment would be somewhat disappointing.
You need to take into account factors such as :
- Investment categories.
- Currencies/countries.
- Sectors.
Asset allocation represents the main distribution of wealth across different investment categories.
As a result, a portfolio with solid diversification foundations ensures the security of your investments.
Losses are limited and the level of risk associated with an asset class is stable over the long term. In fact, mixing several investments considerably reduces the level of the asset class.
Investment categories
You are an investor whose choice between several investment categories influences the level of your risk-return profile.
These categories have specific characteristics, including equities, bonds, commodities, property, precious metals, etc.
Remember, asset allocation allows you to define the most effective strategy for reducing the level of risk and distributing capital in the best way between the best investment categories.
Currencies and countries
Investors generally analyze trends in their own country. This is perfectly normal since they are more familiar with the companies and the current eco-political environment.
However, diversification encourages investors to invest part of their funds abroad and in other currencies.
In this way, risk is always limited.
The sectors
Each sector has its own characteristics and specific features. For example, the agri-food sector is considered resilient because demand for basic products remains stable, even during economic crises.
On the other hand, the luxury goods industry is much more sensitive to economic fluctuations, as it is heavily dependent on consumer confidence and purchasing power.
Similarly, companies in the energy sector, such as those specializing in fossil fuels, are influenced by fluctuations in oil prices, whereas renewable energy players benefit more from public policy and long-term technological innovation.
So a diversified asset allocation, with sectors that have low correlation, helps to cushion economic shocks and optimize portfolio performance.
Diversifying your investment funds makes it easier to invest
Our latest article in AGEFI says it all, and as our co-director Swen Grau points out, speed of action is our trump card.
Forget traditional platforms, because SIPA Crowd Immo already owns the property when the investment is opened.
So the steps :
- Property selection and acquisition.
- Valuation and investment plan.
- Creation of a public limited company on the property to facilitate the purchase of shares by investors.
- Receipt of rental income in the form of dividends.
What’s more, equity ownership is a very comprehensive investment model that includes :
- Rental management.
- Administrative management.
- Legal and mortgage management is provided by partners who are recognized in their market.
For SIPA Crowd Immo, the watchword is clear: diversification goes hand in hand with turnkey service and a rapid process (for investors!).
Search