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There
are three types of residential Real Estate Investments that
the Partnership may consider:
- Investment
in affordable housing projects
- Investment
in smaller residential projects such as condominiums or
townhouses
- Investment
in Apartment & Penthouse developments
The affordable housing market across USA has exhibited significant
returns recently. The Investment Advisor recently compared
the current sale prices of a pool of properties to the initial
purchase prices over an average hold period of 5 years.
It was found that the average compounded annual rate of
return of capital appreciation exceeded 25-40%. Although
this calculation did not consider property transfer tax,
commissions, and other transfer costs, which would reduce
the returns to the investor, neither was the potential rental
income considered, which could be significant for this type
of property. In the event that the Partnership were to invest
in this type of asset, every effort would be made to optimize
rental income.
Like with all of the Partnership investments, we evaluate
each opportunity carefully and conduct the appropriate level
of due diligence before proceeding with an investment with
this risk profile.
The diversification
of the Partnership's portfolio will also tend to mitigate
these risks.
Please contact
us for further information. We look forward doing business
with you.
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