Residential property investment without the trouble and worries of buying an apartment
Stable return on moderate risk. This sums up the reasons why residential and real estate investments have attracted constantly growing interest in the past few years. Growth centres are expanding due to internal migration, population is ageing, and homes and facilities are needed also during periods of economic turbulence. Property investments deliver rental income even if equity markets were downbeat.
Owning investment property directly and direct property investments demand extensive background work, knowledge of the market and large initial capital, not to mention the trouble of maintaining the property and finding tenants.
A residential property fund or a real estate fund allows investors to enjoy the benefits of property investment without the obligations of direct ownership. They are also a good complement to the investment portfolio. A diversified portfolio with investments in a residential or real estate fund, fixed income instruments and shares is more balanced in terms of risk.
Efficient diversification
A real estate fund spreads the risk associated with tenancy and location. When you invest in a fund instead of a single buy-to-let property, you may get up to thousands of tenants at one go, while the properties owned by the fund are diversified across the country.
Investing in a real estate fund does not require great wealth. Through OP’s funds, you can become a residential and property investor even if you only have a smaller sum to invest. Residential property and real estate funds are a convenient option for investors and do not require any prior experience.
However, what a real estate fund investor should have is a long-term perspective because investing in apartments and other property is in general a long-term commitment. Stable and steady returns that typically exceed those of fixed income markets coupled with lower risk compared to equity markets – if these are aspects that appeal to you and if you are a moderate investor, property investment could offer good options for you.
OP-Rental Yield: easy path to becoming a residential and property investor
OP has two funds that focus on residential and property investment: OP-Rental Yield and OP-Public Services Real Estate. Both are non-UCITS funds, which distribute annual return to their investors in accordance with the law, at least 75% of their rental income. The return and value of these property funds depends on the general value performance of residential and property markets and on rental demand.
engages in owning, renting and construction contracting of apartments and business premises in and around the growth centres of Finland. The fund seeks returns primarily by renting out the apartments it owns and extra returns by renting out commercial property. By investing in OP-Rental Yield you can become a residential investor without buying an apartment and without large initial capital.
Apartments deliver stable rental income and the residential property fund effectively diversifies your investment. The recommended minimum period for investing in OP-Rental Yield is four years. More information on OP-Rental Yield is available