You may consider investing in an REIG if you wish to invest in a real estate project, but do not have the time or resources to oversee the management of your investment.
This financial product is made up of different assets (real estate) shared between different partners. If the idea of shares does not appeal to you, it translates into a sum of money that will allow you to grow your assets. But don’t be fooled, like any investment, it also involves risks.
REIGs are a type of real estate investment that allows several investors to pool their resources in order to invest collectively in real estate. This type of collective real estate is managed by a company, usually a REIG (Real Estate Investment Group), which is the sole owner and manager of the real estate assets held by the REIG. By pooling their investments, small investors can benefit from lower transaction costs and higher returns than if they were to invest directly in real estate.
The advantages of investing through an REIG are numerous:
– Access to larger and more diversified real estate portfolios ?
– A simpler approach than dealing with a direct investment?
– Professional management by specialized companies?
As with any investment, there are risks associated with investing in REIGs, such as a decline in property values or changes in legislation affecting tax treatment.
However, careful selection can mitigate these risks and should be considered along with your own risk tolerance level before making any investment decision.