Battered by an economic downturn over several years, investors like their counterparts in the European Union and the United States, looking for investments that maximise asset growth.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Risks of Real Assets as an
Investment - Daniel Kalenov
All investments, including property funds and other real
assets, carry risk.
Following years of poor performance by market-traded securities, investors are
choosing real assets as an alternative. But all investments are subject to risk.
Battered by an economic downturn over several years, investors like their
counterparts in the European Union and the United States, looking for investments
that maximise asset growth. Traditional market-traded securities (stocks and bonds)
in particular have underperformed, leading investors to look at alternative
Alternative investments range from the opaque (short only funds, ultra short funds,
absolute return funds, market neutral funds, hedge funds) to the transparent, such as
real estate investment trusts (REITs), private equity and venture capital. A subset of
alternative funds includes real assets, including land, developed real estate, rarities
(art, antiques, stamps, fine wine, coins, antique cars), precious metals (gold, silver,
platinum, palladium) commodities (energy sector fossil fuels, plus agricultural goods
such as wheat and corn) and even renewable energy products (biofuel crops, solar
panels and wind turbines).
This last category, real assets, holds great interest after the disappointments of exotic
and complicated investments such as derivative assets. Art can be appreciated with
the eyes, much like antiques. Fine wine can be held, traded or even consumed (a
reckless investment act, but sometimes a celebratory gesture of something of even
greater significance). Land can be traversed, formed, beautified and turned into
human habitat. Precious metals are sometimes adornment, or held in bulk in safety
vaults. We feel good when we invest in energy to power industry, perhaps even more
so when it is from renewable and non-polluting sources. An antique car might be
driven for very special occasions - carefully and responsibly.
But real assets such as these carry their own risks. While insurable, rarities such as
art and antiques can be utterly eliminated by fire, natural disaster or theft.
Commodities are subject to market forces that can, under some circumstances, cut
value to a net loss.
Land investment and land development are also subject to external forces. But
professional advisors control variables in strategic land investments with methods
that include the following:
1. Choose land that will likely appreciate -Experienced land investors
(many investors join small-group funds with professional advisors) search for
property that is ripe for development (usually for housing) to accommodate growing
population. Such properties are typically slated to become part of a town plan. The
investors - who at a minimum invest 10,000 - do not blithely wait for the planning
process to play out but actively ensure their land investment progresses on a timely
2. Infrastructure investment (where appropriate) -Some land
investments benefit from the building of roads, the installation of utilities and water
and sewage removal. This makes the property ready to build for construction firms.
3. Expertly time the land sale -All strategic land development follows a
pre-set timeline. This is important to the investor, as he or she can know when to
expect a distribution on the eventual sale profit.
Still, even well managed property funds investments come with unknown variables.
Would-be investors who want to learn more about strategic land should consult with
Daniel Kalenov an independent and qualified personal financial advisor.
And learn about real asset investing, retirement security, offshore diversification,
and many other topics. Daniel Kalenov Global Diversified Partners help people take
control of their financial well being by educating them on the benefits of investing in
tangible assets and by altering their perception of what “smart investing” means
To know more, please visit: