Investments in real estate generate an investment flow for the investor against investing in real estate funds. The funds bring together a large number of investors and create for the investor an investment alternative to the common traditional investments (provident funds, the capital market, investments in local real estate). The investments are suitable as a second layer of investment and are recommended for long-term investment only.

between the letters

  • The investments are mostly illiquid and cannot be withdrawn for periods ranging from 2-6 years.
  • The investments are mostly marketed by the local investment houses and allow the client to invest together with the investment house in the funds.
  • Most funds will provide a return similar to the capital market, beware of funds that present controlled data as there have been several funds that have presented false data to clients in recent years.
  • Most often, the funds leverage the fund amounts by taking a loan from a local bank, the fund will receive loans on preferential terms due to its size and great economic power.

The tips of Lamda experts

  • Investing in real estate is a unique tool that allows the client to diversify his investment portfolio, we recommend that clients managing NIS 1M or more consider investing in real estate funds for the purpose of diversifying the investments in the portfolio.
  • Invest with the help of a supervised institutional body and after consultation with a professional body only. Today there are several unsupervised entities in the local market that manage funds without the close supervision of the regulator.
  • Understand the conduct of the fund you are communicating with and whether that fund has a local representative who handles the operational and technical issues since one of the main mines in real estate transactions abroad is the ability to operate the body/fund in a foreign country.

Check the taxation aspects of each and every investment. For example, if you invested in the US, you would pay inheritance tax in the intergenerational inheritance of the funds.