Let’s take it one step at a time, as he said Jack the Ripper:
- Properties located in areas that are attractive to European investors, such as Florida, California or Manhattan itself, have experienced – and are likely to continue to experience – a slowdown in property prices across the board. Houses or flats prime should be at the top of investors’ lists. And although their price has not fallen as much as that of other assets, real opportunities are beginning to emerge that keep their potential for an upward rally intact prime once the sector recovers. Undoubtedly, these are enviable upside prospects from the perspective of those who have suffered in the Spanish property market.
- Corporate fixed-income markets have suffered and will continue to suffer to an unprecedented extent. The stability of corporate debt with investment grade Since last spring, it has become a veritable cascade of gold knives. A decline that is likely to continue until at least the end of the 2008 financial year. But there are already some very tempting gems to be found with which to start building a portfolio, both in the non-financial sector and, for the more daring, in corporate debt from the very heart of the investment banks rocked by the credit crisis.
- US equities as a whole have fallen by more than 12% (DJIA) over the last three months. Here we will find large, exemplary companies at prices that are already very attractive. Furthermore, there are sectors such as technology where the decline in the top companies has exceeded 25%. And for those who love a thrill, the financial sector has been, and continues to be, the hardest-hit sector. Its declines to date have been well over 30 and even 40%, and amongst them we see world-class banks such as Citigroup, Bank of America, Merrill Lynch o Wachovia, to give just one example. In any case, for investors with a lower tolerance for risk, it is not a bad idea to steer clear of that financial sector. For further information on the best US equities, please consult the Teacher. If this were a Spanish RV, I would also refer you to the other one Teacher, opposites in every respect, yet both Masters.
- As for the currency, its greatest appeal lies in the cost-saving benefits it offers for our strategic investment across the three scenarios outlined above. Not to mention that the cabin depressurisation It is forcing the Fed to cut $ rates to levels where mortgage holders can breathe on their own and remove the oxygen masks that have suddenly dropped from their ceilings. Perhaps currency speculation might also yield a capital gain on our investments via the $/€ exchange rate, but the US dollar may also have bottomed out and stagnated, or its undervaluation against the € may even become more pronounced. Let us not forget that this is the mother of all speculation. In any case, investing in a coordinated manner across the three scenarios outlined above, with the euro trading at one and a half dollars, fits perfectly into the overall picture of this strategic investment.
But how can we make an investment like this in a structured, interconnected and coordinated way? The answer is that we are working on it as a multi-family fund office. Firstly, we analyse the strategic opportunity presented by the global economic landscape. We then assess our clients’ interest and willingness to make a structured or tailored investment across all the scenarios mentioned. Once the 4 aces In those areas where we believe it is worthwhile to invest, we focus on selecting and specifying the assets. We then develop a generic framework that suits the majority of our clients, although each structured investment must nevertheless be tailored specifically to each client. Naturally, to achieve this, we have drawn on the help and advice of the leading specialists with whom we regularly collaborate, as well as new partners such as reputable professionals from Royal We will be present in each of the selected markets. And finally, we will seek the appropriate international banking framework to coordinate the management, custody and administration of the assets. At present, we are considering bespoke structures starting from around €700,000. Subsequently, in line with our commitment to adapting high-net-worth investment protocols for smaller investors, we will aim to adapt these structures to amounts below €300,000.
All of this is structured as a Structured Investment scheme that allows investors to invest simply on the basis of the value of the property to be purchased. And to ensure not only that, within a maximum of 15 years, the investor has fully amortised the property, but also that their initial investment has benefited from the dividends generated by the equity portfolio and any potential rental income from the property (if they do not wish to use it exclusively for their own purposes).
Let us not lose sight of the fact that the main motivation for making an investment of this kind is the potential capital gain from each and every one of the four aces. Of course, as these capital gains are realised, the break-even From that point onwards, the period over which we will regard the investment as doubled will be significantly shortened, enabling us to recoup the cost of our property purchase in well under 10 years. In our view, this four-pronged strategy could, in the coming years, deliver truly spectacular returns on our investment, which for the client would not even represent a simple opportunity cost.
Personally, I’d prefer a small flat in Manhattan to a little house in Tampa Bay or Malibu. But this will have to be tailored to each client because, however profitable an investment may be, it’s pointless if it doesn’t make the owner happy. Is the American Dream making a comeback?
We’ll keep you updated…