It’s challenging when you want to diversify your portfolio, but you’re limited by your lack of knowledge about investments in Australia. The good news is there’s a way to put your money in a single investment, but get the opportunity to invest in numerous assets.
Assets involved in this type of investment include commercial properties that are either listed or unlisted. You get the chance to take your pick, depending on the financial institution where you invest your money in.
It sounds intriguing and interesting, but it can be complicated. To make it easier for you to understand what commercial property funds in Australia are, here are some tips and facts.
Property Funds Let You Invest in Real Estate
To further explain what’s already been mentioned above, a property fund is money generated from the reinvestment of investment units. The purpose of the fund is to allow investors to lease or purchase more investment units to build up the fund as a whole.
You’ll Need an Institutional Investor
The question is, where can you acquire property funds? For this, you have to go to institutional investors that can offer you what you need.
An institutional investor is not necessarily a bank. It can be a large financial organisation, labour union, pension fund, or insurance company.
In Australia, there is a long list of institutional investors that you can choose from. They have investment managers who can help you grow and manage your investment.
However, please take note that each institutional investor has its own set of requirements and features. Some may require a minimum investment of $10,000, while others need $20,000.
Benefits of Investing in a Property Fund
The best thing about investing in a property fund is that it allows you to target commercial properties that have high occupancy rates. This ensures you’ll get a reliable source of income.
In addition, you’ll get stable returns and long-term capital growth if you invest in commercial property funds Australia. To get you moving with your property fund investment now, choose the best institutional investor that you can find.