How are real estate funds evaluated in Türkiye?
With the flourishing investment opportunities in Turkish real estate funds and their various features that provide investors with encouraging investment successes in their savings and capital, the differentiation between real estate funds remains based on their features and investment components. So, on what basis can we evaluate real estate funds to choose the most suitable ones to invest and put our financial savings in?
1. Diversification of investments
One of the most important recurring investment tips in any investment field is to seek to diversify investments, as is the case in real estate investment by diversifying properties and distributing capital to them, such as distributing the fund's capital to a variety of properties in different locations and geographical areas, as this helps to reduce risks and establish a more stable investment portfolio.
The more diversified the portfolio or real estate fund, the greater the chances of capital preservation; however, excessive diversification may also prevent capital from growing rapidly in some cases, as it is unlikely that real estate prices will grow at the same level in all regions and in all real estate types, but the overall growth of capital will be at a steady pace, so diversification should be based on a thorough study and experience in the real estate field, with a good selection of investment-value properties.
2. Financial returns
Reviewing the portfolio's and real estate fund's past achievements will also help us in differentiating between different funds. The higher the financial returns on the fund, the better the fund is managed and the better the idea of investing in the fund.
However, the comparison should also be based on similar criteria between the funds and the size of the fund.
3. Risks
The risks of investing in real estate funds are divided between market risk (such as recession, inflation, and changing interest rates), property risk (such as poorly chosen or poorly researched properties), and management risk (such as investing in the wrong place or at the wrong time).
Investors should consider the types of potential risks, and make a firm investment decision based on them, without taking unwise risks. Investors need to know how much risk they can afford to take.
4. Transparency and management
The fund managing company must have complete transparency in dealing with data, and also make that data available to its clients immediately, so that investors in the funds are aware of the growth or decline of their capital, and then make this information available to the public and to new investors or those wishing to learn about the fund’s investment activity. Without trying to hide the facts about investing.
Transparency in presenting information and in fund management will enhance customers’ confidence in the fund. Therefore, it is important to pay attention to updating data related to fund management and investment performance. We always advise investors to try to be aware of the minutes and details about any fund’s information before investing in it.
5. Access to markets
Another criterion for evaluating real estate funds to evaluate them based on their access to different markets, both internal and external, as it is important to reap more success in investment funds; and access to active and fast-growing real estate markets.
6. Legislation and regulations
Compliance with government legislation and regulations in the work of real estate funds guarantees investors the safety of their investments in the fund and the preservation of their capital, so it is useful to have a general knowledge of the regulations approved by the Securities Markets Authority in Turkey, which is the body responsible for regulating the work of investment funds of all kinds, and whose periodic monitoring of the work of funds will have an important role in the continuation of the fund's work and its license.
Start investing in real estate funds in Türkiye with Oragon Company
After this general briefing on the most important points on which to differentiate between real estate fund management companies, this is an invitation from Oragon to those interested in this type of ambitious and bold investments to discover our integrated business model, through which we have been able to combine the elements of success in this field, whether by providing solid real estate expertise, and successful and brilliant investment management.
It is worth noting here that Oragon has the elements that make it a pioneer among its peers, especially in the field of establishing and managing real estate funds in Turkey, and its management team has high efficiency and long experience in the Turkish real estate sector, in addition to being managed by a group of specialists in the field of economics with bright names and those who have left their distinctive mark in this field.
Edited by Oragon Company ©
