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Thursday, April 15, 2021

Pension Fund in Real Estate

If you order your cheap custom essays from our custom writing service you will receive a perfectly written assignment on Pension Fund in Real Estate. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality Pension Fund in Real Estate paper right on time. Out staff of freelance writers includes over 120 experts proficient in Pension Fund in Real Estate, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your Pension Fund in Real Estate paper at affordable prices! If one is given a million pesos to invest over a period of thirty years without withdrawal, more often the most likely asset to be chosen is real estate. No stock or bond can approximate the investment return that land can realize over a long-term horizon. In the Philippine stock market the index is back to where it was in the late eighties whereas bonds average less than 1% per annum. Real estate values, however, grew by leaps and bounds especially in the early nineties such that annualized returns where known to hit over 15%. Its intrinsic value is especially appreciated in periods of inflation and economic slowdown. During adverse times land is known to preserve its value unlike other assets that tends to depreciate or diminish in price.


One particular financial institution that has monitored this favorable trend towards real estate venture is the pension fund. Considering the magnitude of multiple fold returns, it is therefore natural to expect pension funds to allocate a percentage of their portfolio in real estate investments. The difference among pension funds lies, however, in two modes of their entry in this asset class�the percentage of allocation and extent of participation in the real estate industry.


The percentage of allocation depends on the investment guidelines outlined by the trustees as discussed with the trustors. In most cases the trustor provides a reasonable level of discretion for the fund management to decide how much to allocate in the investment pie for property investments. If the industry is on the upside the tendency is to invest heavily on real estate and light once the boom is tapering. Typically, after allocating a routine percentage in stocks, bonds, money market instruments and other fixed income or equity placements, a residual value of total invested funds is set aside for adventurous but not so speculative investment one of which is real estate.


In a down property market the funds ability to divest and reallocate investments out of real estate will depend on the nature of participation or how deep was the fund involved in real estate. Whether it is in equities, project or financing, each type of investment will require a specified level of effort to exit. If the real estate equity is traded then the stick can be easily sold. If the investment is in land or project financing, the exit mechanism is more difficult. Even worse is if the fund entered into full property development and has engaged in acquisition, construction and marketing of real estate. Cheap essay writing services offer help on Pension Fund in Real Estate


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