Mortgage REITs earn their profit by sourcing capital at cost X, lending it at rate Y, and earning the spread in between. They borrow short, lend long, and so they are very sensitive to the interest rate curve – something that is completely out of their control.
Are REITs better than stocks?Yeamin Juwel2020-12-02T07:58:36+00:00
Better Performance — While some REITs have historically experienced diminished performance when interest rates increase, many REITs outperformed other investments, even in the face of high-interest rates. And REITs often outperform other stocks in a slow economy.
Why are mortgage REITs falling?Yeamin Juwel2020-12-02T07:58:14+00:00
Interest rates have never been lower. There are a few reasons for the recent decline in mortgage REIT prices. For one, recession fears are making the value of the mortgage-backed securities (MBS) owned by these REITs decline in value, especially for those that own mortgages not guaranteed by Fannie Mae or Freddie Mac.
Are mortgage REITs a good investment?Yeamin Juwel2020-12-02T07:57:50+00:00
In general, equity REITs may be attractive to buy-and-hold investors looking for a combination of growth and income. Mortgage REITs, on the other hand, may be better suited for risk-tolerant investors looking for maximum income, without much focus on capital appreciation.
What is a mortgage REIT?Yeamin Juwel2020-12-02T07:57:32+00:00
Mortgage REITs (mREITS) provide financing for income-producing real estate by purchasing or originating mortgages and mortgage-backed securities (MBS) and earning income from the interest on these investments. mREITs help provide essential liquidity for the real estate market.
Who regulates private lenders?Yeamin Juwel2020-12-02T07:56:13+00:00
Lenders and mortgage brokers must hold a credit licence or be registered as an authorised credit representative and must adhere to the rules set out in the NCCP. The NCCP Act is regulated and enforced by ASIC in accordance with the National Credit Code (NCC).
What is considered a private lender?Yeamin Juwel2020-12-02T07:55:47+00:00
A lender who is not affiliated with a bank or traditional lender, and who may or may not normally be in the business of providing loans. Private lenders are not as constrained by regulations as traditional lenders are and can approve ventures that traditional lenders cannot.
Is it better to get a mortgage from a bank or lender?Yeamin Juwel2020-12-02T07:55:18+00:00
Unlike brokers, banks don’t have to disclose what they make on your loan. You may pay more than you need to if you don’t shop aggressively. Mortgage banks tend to offer fewer products. If they don’t sell the loan that’s best for you, they may not tell you about it (or even know about it).
How do private money lenders work?Yeamin Juwel2020-12-02T07:54:49+00:00
Private Lending may be a viable solution. It is essentially borrowing money from a non traditional lender, in most instances, a wealthy private individual or company that has excess cash from their main area of business who is seeking to earn a higher return on their excess funds.
Are private lenders safe?Yeamin Juwel2020-12-02T07:54:30+00:00
What are Private Lenders? It may seem too good to be true: timely loan approvals, malleable payment terms, and attractive rates, but with a private lender, you still have the same security as you would with a bank or other standard lender.
What is the best way to invest a lump sum of money?Yeamin Juwel2020-12-02T07:50:42+00:00
With mutual funds, you may lose some or all of the money you invest because the securities held by a fund can go down in value. Dividends or interest payments may also change as market conditions change.
What is a a mini-master fund structure?Yeamin Juwel2020-12-31T06:25:35+00:00
The mini–master structure generally is comprised of two entities; an offshore feeder and a master entity. While the offshore feeder is taxed as a corporation to benefit U.S. tax exempt investors and block UBTI, the master entity may be structured for tax purposes as a partnership.
What is the difference between master fund and feeder fund?Yeamin Juwel2020-12-02T07:48:00+00:00
The master–feeder structure begins with the investors, who deposit capital into the feeder fund. … The primary difference, of course, is that a feeder fund—by buying into the master fund—receives all of the master fund’s income attributes, including interest, gains, tax adjustments, and dividends.
Should I switch from regular to direct plan?Yeamin Juwel2020-12-02T07:33:05+00:00
The expense ratio of a direct plan is lower as compared to the regular plan. … A higher expense ratio creates a higher charge on the NAV of the fund. This, in turn, results in a lower return on investment. So, switching to direct plans of mutual funds helps you to earn higher returns as compared to regular plans
What is direct and indirect mutual fund?Yeamin Juwel2020-12-02T07:32:08+00:00
Direct and indirect (or regular) plans are ways in which one can invest in a mutual fund. For e.g., if you want to invest in ABC mutual fund, you can invest in it either through a direct plan or a regular plan. … The former allows purchase of funds at a lower cost, as it eliminates the expense on distributor commissions.
What are the advantages of indirect real estate investments?Yeamin Juwel2020-12-02T07:31:36+00:00
What Is the Difference Between Direct and Indirect Investments? Direct investments are those in which the investor owns the particular assets himself, while indirect investments are investments made in vehicles that pool investor money to buy or sell assets, according to Red Mountain Asset Research.
What is an example of an indirect investment?Yeamin Juwel2020-12-02T07:30:17+00:00
Indirect means buying into a property investment without actually buying the property itself directly. For example, indirect investment might involve purchasing units in a company or scheme which does own the property investment. REITS (Real Estate Investment Trusts). …
Offshore holding and property owning companiesYeamin Juwel2020-12-31T06:22:35+00:00
An offshore company is a very flexible corporate entity. As such it can be integrated into a wide variety of business arrangements. Reduced tax and increased confidentiality are just two of the main benefits which can be achieved by a proper application of the offshore company. However, it would be erroneous to believe that an offshore company incorporated in a no-tax jurisdiction “flies above” all the complicated tax regulations in force in the high-tax jurisdictions. Contrary to a popular belief, having an offshore company in itself does not relieve its owner from all personal tax liabilities in his home country. A clever use of an offshore company, however, can reduce, defer or completely eliminate some tax that would otherwise be payable by his business. The ability to accumulate revenues in a tax-free and hassle-free environment of an offshore jurisdiction are especially helpful to start-up businesses, allowing them to grow faster be more competitive.
How to transfer ownership to a Offshore Property Investment?Yeamin Juwel2021-01-02T05:34:59+00:00
I’m often asked can I transfer ownership of my home or investment property/s to my tax free Offshore Company (“IBC”)?
It can be done legally but you need to assume the worst case scenario (ie that that the local tax authorities or a litigation lawyer will investigate and possibly try and overturn the sale or transfer) and plan accordingly.
The key is commercial reality. The sale or transfer must be, and appear to be, “above board”.
Buying Offshore Property – what you need to know?Yeamin Juwel2021-01-02T05:35:23+00:00
Investing in property in another country can be an appealing prospect, especially for Bangladesh. There’s the potential for a rental income in a foreign currency, which appears to offer stability and security in today’s topsy-turvy market; plus, having the option of another place to live may give you comfort.
Are you ready to invest in Offshore Property?Yeamin Juwel2021-01-02T05:35:44+00:00
Determine your objectives and the best strategy to meet them. Are you looking for a property you’d eventually like to retire to, a property you’d like to visit regularly, or is it purely an investment? It’s important to consider your budget, risk profile, timelines, family goals, tax strategy, comfort levels and investment preferences. Once you have set these, they’ll help you form your own personal checklist when looking for the right investment.
Offshore Property offers a world of opportunitiesYeamin Juwel2021-01-02T05:35:59+00:00
Investors have increasingly looking for offshore property investment scopes for stable investment growth and inflation-free returns. This also ensure property investments delivering strong performances at the end of each budget year in any particular nation where the investment took place.
Portfolio and Direct Investment flows in developing countriesYeamin Juwel2021-01-02T05:05:17+00:00
International investment or capital flows fall into four principal categories: commercial loans, official flows, foreign direct investment (FDI), and foreign portfolio investment (FPI).
Commercial loans, which primarily take the form of bank loans issued to foreign businesses or governments.
Official flows, which refer generally to the forms of development assistance that developed nations give to developing ones.
Foreign direct investment (FDI) pertains to international investment in which the investor obtains a lasting interest in an enterprise in another country. Most concretely, it may take the form of buying or constructing a factory in a foreign country or adding improvements to such a facility, in the form of property, plants, or equipment.
What is the difference between Foreign Direct Investment (FDI …Yeamin Juwel2020-12-01T12:20:52+00:00
Inward Direct Investment, also called direct investment in the reporting economy, includes all liabilities and assets transferred between resident direct investment enterprises and their direct investors. It also covers transfers of assets and liabilities between resident and nonresident fellow enterprises, if the ultimate controlling parent is nonresident.
Private Capital flows: Foreign Direct Investment Portfolio …Yeamin Juwel2021-01-02T05:09:11+00:00
Foreign direct investment (FDI) is an investment from a party in one country into a business or … Lasting interest differentiates FDI from foreign portfolio investments, where investors … This leads to large capital outflows from the host country.
What is portfolio investment with example?Yeamin Juwel2020-12-01T12:12:44+00:00
A portfolio investment is ownership of a stock, bond, or other financial asset with the expectation that it will earn a return or grow in value over time, or both. It entails passive or hands-off ownership of assets as opposed to direct investment, which would involve an active management role.
How is FDI different from portfolio investment?Yeamin Juwel2020-12-01T12:12:08+00:00
Key Takeaways. A foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. Foreign portfolio investment (FPI) instead refers to investments made in securities and other financial assets issued in another country.
How do I make an investment portfolio?Yeamin Juwel2020-12-01T12:11:34+00:00
Foreign portfolio investment (FPI) involves an investor purchasing foreign financial assets. The transaction of foreign securities generally occurs at an organized formal securities exchange or through an over-the-counter market transaction. Foreign portfolio investment is becoming increasingly more common as a means of portfolio diversification. Often, FPIs consist of securities and alternative foreign financial assets that are passively held by a foreign investor.
An investment gives returns in proportion to its risk factor. If one invests in highly risky assets like bitcoin, they can either get absurdly high returns or go to zero. But if one invests in treasury bonds, the risk factor is almost zero, but the returns are also very low. And each financial investor will have their own risk profile, which is tailored to their specific investments.
But the investments available in the market are not tailored to such needs. Hence each investor will have a specific requirement that can be maintained using a portfolio.
Deciding to invest in another country is lengthy and difficult process, full of details and the possibility of traps, which requires local know-how and expertise. If a Joint Venture partner or business partner is involved in the other country, even more caution is necessary. Consulting investors regarding their industrial investment in other countries, assisting investors in determining suitable and matching investment partners or business partners, and accompanying our clients when preparing and realising their industrial investment in another country is our passion!
Cross-Border Investing: Increasingly important for start-ups …Yeamin Juwel2021-01-02T05:27:00+00:00
Cross-border venture capital investments play an important role in the scaling up of high growth companies, according to Strategy Professor Wendy Bradley. Foreign capital, expertise, and the networks that accompany cross-border investments are welcome by start-up ventures. However, a concern is that they transfer the majority of economic activity to the investor country. In new research, Bradley of SMU Cox and her co-authors examine cross-border venture capital (VC) investments and its implications for public policy.
“In a world with increasing nationalist rhetoric, government should find a way to be more accommodating,” Bradley states. “The movement of companies and talent is foundational to the VC industry.” Purely domestic life sciences businesses do not exist; nor is there a technology firm that’s not global. “There is a need for cross-border investments and partnerships for the advancement of science and economic growth,” says Bradley.
Cross Border Investment – Bangladesh mortgage loans for …Yeamin Juwel2021-01-02T05:27:21+00:00
Have you wanted to own an investment property or second home in Bangladesh but thought it was out of your reach? For the past several years, foreigners have been able to purchase properties in Bangladesh using a traditional mortgage! Cross Border Investment provides premium financial services in Bangladesh – including mortgage brokering and closing coordination.
Cross-Border Investments in a changing global marketplace …Yeamin Juwel2021-01-02T05:27:57+00:00
Governments appear to have become bigger players in economic affairs, and we may be entering an era in which nationalist ambitions will make globalization more difficult to manage. What is clear is the need for companies and funds pursuing cross-border investments to adapt their investment strategies and operations to function effectively at the intersection of government, business and finance.
Capital Markets and Cross-Border InvestmentsYeamin Juwel2021-01-02T05:28:59+00:00
Non-bank financing of companies (especially SMEs): In relation to the Capital Markets Union initiative the JRC produces research on the determinants of medium and large firms’ funding choices.
JRC identifies barriers to the cross-border flows of financial investments developing and estimating measures of EU capital markets integration, the geographical diversification of cross-border investments and the extent of home bias in financial holdings.
The JRC develops analyses and research the field of risk sharing (consumption smoothing in case of economic shocks) with a focus on individual European countries.
Active vs Passive Investing. Why passive investing is better.Yeamin Juwel2021-01-02T05:19:35+00:00
For active portfolio managers the central questions are whether information is already incorporated into market prices and is there a way to accurately predict when to buy and sell assets to produce better returns from short-term market predictions. Unfortunately, skill in evaluating the business prospects of a firm or the outlook for an industry may not be sufficient for successful trading. To construct a market beating portfolio, active managers must identify miss-priced securities. They must have accurate information that other investors don’t know about yet. To profit from this insight, other investors must then act upon this information, causing the mis-pricing to be corrected. In a world where information is rapidly distributed, and use of insider information is illegal, identifying miss-priced securities is a tall order. Gaining an advantage over other investors in a competitive market place is challenging. To be successful, active managers must regularly find miss-priced securities and anticipate when unusually high or low returns might begin or end. The failure of active management to outperform the market would provide solid evidence that capital markets are functioning efficiently.
Building a passive portfolio – passive capital managementYeamin Juwel2020-12-31T06:36:20+00:00
The mass media of late has given full coverage to the benefits of using low-fee passive investment vehicles – ones that do not try to pick individual positions, but rather represent broad asset classes. The next logical step, building a passive portfolio, is a much more difficult proposition. Which asset classes to choose? Which vehicles to buy? What allocations?
Comparing active and passive investment portfolio approaches…Yeamin Juwel2020-12-31T04:57:05+00:00
One of the most fundamental task of real estate portfolio approach is to take the decision of which approach you would like implement for your investment. You can either undertake active portfolio process or can go for passive portfolio approach. Each has their own objective and is suited to certain circumstances, in particular, during the prevailing monetary conditions.
What is passive portfolio financial approach in one sentence?Yeamin Juwel2020-12-31T05:00:35+00:00
Active investing, as its name implies, takes a hands-on approach and requires that someone act in the role of a portfolio manager. The goal of active money management is to beat the stock market’s average returns and take full advantage of short-term price fluctuations. It involves a much deeper analysis and the expertise to know when to pivot into or out of a particular stock, bond, or any asset. A portfolio manager usually oversees a team of analysts who look at qualitative and quantitative factors, then gaze into their crystal balls to try to determine where and when that price will change.
Active investing requires confidence that whoever is investing the portfolio will know exactly the right time to buy or sell. Successful active investment management requires being right more often than wrong.
Hypothetical portfolio investment for Asset Portfolio InvestmentEicrasoft2020-10-24T09:18:46+00:00
Also called speculated portfolio investment, is more of an estimation based investment plan. Risk factors are there in this portfolio type. However, investors often seem to choose this as it has considerable profit scopes and pockets for investment benefits.
Defensive portfolio investment for Asset Portfolio InvestmentEicrasoft2020-10-24T09:15:33+00:00
This type of portfolio style is rather more conservative in nature. The management and investment strategy process in this category is rather more at a safer side for investors and clients. This in result minimizes losses of investors during unfortunate market crisis.
Direct vs. Indirect portfolio investmentEicrasoft2020-12-31T06:37:40+00:00
On contrary, in case of indirect portfolio investment, investors put money on assets; in our case various real estate or commercial property shares. This invested asset eventually catalyzes to generate revenues for the shareholder.
Say for example: If you have handsome capital backup, and now you purchased a property. Here you are the owner and this process goes under your direct investment portfolio profile.
On the other hand, for instance, you have bought some shares or REIT stocks of the publically announced asset, instead of the whole property itself. In this case you are not the absolute owner of that property but you get profit returns for your invested shares. So, this can be defined as the indirect portfolio investment.
Why real estate portfolio investment?Eicrasoft2020-10-24T09:13:29+00:00
Real estate is a substantial asset which gives you 100% asset ownership for just partial or share based funding.
On average the market return for real estate investment portfolios is more or less 11%. This gives investors a better estimation rate.
If demented regarding direct investment on real estate, you can always try the REIT (Real Estate Investment Trust). This is much more convenient, safer and offers better returns per stock share purchased.
Real Estate portfolio investmentEicrasoft2020-12-31T06:38:29+00:00
An investment return in real estate field is commercially successful for investors only when the capital is injected on the right assets at the right time. This is where our industry leading business experts come into play.
More about tactical portfolio investmentEicrasoft2020-12-31T06:38:56+00:00
Unlike a strategic investment portfolio, tactical approach demands for regular purchasing and selling of real estate assets. Through this approach investors can generate short term incomes at a consistent rate.
More about aggressive portfolio investmentEicrasoft2020-12-31T06:39:19+00:00