The year 2020 has started, full of emotion. The effects of the coronavirus have brought uncertainty about the prospects for global economic growth, and this resulted in a negative impact on the price of the asset in the world. Here's not one was different: for the stocks, funds, real estate, among other assets, net, are also experienced.
Talking about the real estate fund (Sief), in 2019 we saw a significant enhancement of 36% (Ifix), which, in this movement, for correction, globally, has led to a fit that is more intense than we've seen at any other time since the relevant part of the funds that are listed and if they were sobreprecificados.
“For some reason, people rely on the price, and not on the values. Price is what you pay for. The value is the one that you take with you” (“Warrem Breakfast”) In 2020, the Ifix accrue a loss of 7 per cent, many of the Sief they returned to levels close to their fair price and, in this perspective, we see more opportunities today than we saw at the end of 2019. Here, we see a description of the way that the prices are as healthy, but we emphasize that in the financial markets tend to overdo it on the valuation of the assets that are listed on the stock exchange is up or down. So, Be Careful! In a period of great optimism in the economy, both because of the economic foundations of today, from the perspective of the improvement of the investors to trade assets with a multi-greatest assets-the most expensive and at the times when there is a greater negativity for the investors to trade assets with multiple smaller assets more cheaply).
These shifts in the market take place in parallel to the fluctuation of interest rates. Since they are the main point of the market return, interest rates are likely to be in a good thermometer of confidence. When there is more uncertainty in the economy, there is a migration of the features of the risky assets (Stocks, real estate FUNDS, etc.). to active-low risk to Fixed Income (Interest Rate).
Accordingly, the assets, the Risk is lower, while the reverse is the case with interest, given the increased demand for private equity investors.
For the time being, it's critical to understand what is the real worth of an asset, whether it be in real estate or not. When it comes to assets in real estate, we like to think in the point of view of the islamic fundamentalist. In other words, how much does it cost to play it or how much is the cost of the replacement term is used extensively in the real estate market) is the value of the land + cost of the approval of the project, cost of building + cepac or the granting or expensive.
It is with this in view, on the real Estate Market, and the less-financially, that we are looking to make an active management of our portfolio. We have built a regrinha” (Thesis-on-Investment that helps you to buy and / or sell the asset at any of the moments of the market, it does not take into account the emotion, and in this hour, you are left on the surface of the skin. Thus, we can see the volatility of the market as more of an opportunity than a risk, in generating a good entry and exit points, driven by assumptions that have previously been defined.
All assets in today's real estate funds are pretty much the same as of December 19, and the liquidity and the resulting volatility) is not supposed to do that, the investors chose to sell their shares. Did any of the investor decided to sell your house (out of stock) for an account of the volatility of the recent financial market? Our understanding is that it is not, it is not decided to sell it. The growth in real estate investment funds should consider their investment with an eye for the long term in order to receive the income (rent-free) and a valuation of the property from time to time. This is a reading of a Sief is the same for the real Estate it will take some time to develop, but it's all part of the process of Education,” the brazilian is going on and if you got used to it (although it's the number of investors in a real estate fund, has grown five-fold in the last 2 years.
The liquidity in the current market, it gives us peace of mind to pursue the best investment opportunities. Moments of a fall-like this create opportunities for the exchange of assets in the portfolio, sales of assets, which fell to less and less, and the purchase of the asset that you purchased it), but that shouldn't change is the thesis of an investment for any investor. In the current market, we will follow our course, and, for each property that is listed on the stock exchange, we have a buying and selling price (vision on) that allows you to mount or unmount a position.
Just like us, and each investor holds (or should be) a key to the replacement cost, the fair value of the rent for each asset, the speed of the leases for each asset, etc. The decision should always be made on the basis of the law, and the data, and not on emotions. The investor, who has witnessed the loss of the scholarships in the world you may be willing to sell its assets to a heart filled with love, and that it may not be the best choice. Real estate is an investment for the long term!
In this context, the Active Management of the portfolio over the long term it's vital to get the most out of the value of the assets, to mitigate the effect of emotional trading of assets, and to keep up-to-date with the best of the best in terms of both quality and location and it will also take advantage of the funds/ assets that are to be offered to investors.
The RBR Asset management company that is completely dedicated to the real estate industry, and of which I am a member, put at the disposal by way of its investment vehicles to help investors in the professional management of your resources.
Thu: Bruno Nardo, the portfolio manager of the RBRF11, at the bottom multiestratégia of the RBR Asset.
