When facing strong volatility, diversifying your portfolio with safe investments in real assets with a steady yield is a valid alternative for securing both your wealth and revenue.
Having in your pool of assets some diversification options in which invest during high-volatility periods is undoubtedly an excellent strategy for benefitting from steady yields and for securing your wealth. In fact, widening one’s assessment on the so called “alternative investments”, for instance, may allow to bring in stability and security to a portfolio.
Diversification thus appears as one of the fundamentals to attain in order to re-balance the occasional exposition to markets volatility, and at the same time reinforce the soundness of your own investments: a properly diversified and balanced portfolio will overall result more stable than a focused one, performance-wise. The reason is that, by diversifying, it is possible to reduce – even more so as the diversification is comprehensive – the risks connected to a determined category of investments.
A corollary to this first principle is to address one’s attention to sectors and markets unrelated to the investments already active in your portfolio, once decided where to invest. In a nutshell, one should aim at introducing different categories, such as bonds, currencies and real estate, but also to invest in different national markets. By doing so, on an aggregate level, it is possible to reduce volatility by implementing a well-rounded investment portfolio.
Given these two fundamental principles for understanding where to invest with an eye for diversification, aimed at protecting both yield and stability, a well delineated segment as US residential real estate market, with a focus on rental yields can constitute an excellent component for differentiation and consolidation.
That is particularly true when focusing on real estate portfolios highly balanced through a three-fold diversification strategy:
- Invest in operations with a maximum value per property of $ 200,000.
- Invest in different areas of the USA (for instance Florida, or the North-Eastern metropolitan areas such as Philadelphia, Baltimore and Detroit).
-
Invest in different typologies of residential properties (Condo-residences, Townhouses, Single-family homes).
In fact, real estate is by nature a less volatile investment than stock markets, for instance, with a longer timeframe and, last but not least, the certainty of owning a real, tangible property of which you have the keys.
It is for these reasons too that a real estate component in a diversified portfolio should usually make up from 20% to 40% of the invested capital. Moreover, in periods of strong volatility of financial markets, such component can be augmented in order to further stabilize a portfolio.
That is even more significant when focusing on residential real estate investments base on pre-existing opportunities – as, this way, it will be possible to eliminate the whole risk component related to development – and falling into highly sought-after categories by typology, price range and location.
Within real estate, in fact, US rental market historically boasts an even greater stability, since Americans tend to live on rent both for cultural and professional reasons. In some real estate typologies, tenants are over 90% of residents. This social phenomenon determined that the demand for renting had remained substantially steady even in suboptimal economic scenarios, especially in the types of properties that offer the right match of appeal and access (both geographically and financially). After all, people need a roof, and apart from any consideration that makes for a further element of stability.
Back to the main point, why then invest in US real estate? Because the United States are the world’s first residential real estate market, worth over $ 33.3 billion. That translates in a strong heterogeneity of investment options which, when relying on an experienced professional partner, allows to constantly found new profitable opportunities in terms of continuous yield and capital gain over time. On top of that, it is an extremely dynamic market. Residential real estate for sale are “just” 1.4 million for a population of 333 million people. Such limited supply is a hallmark of US market and it determines relatively short time periods for maximizing capital gain and incredibly fast resale. Suffice to say that such supply is on par with the Italian one, whereas population is 5,55 times less. It is also because of this that in Italy only 1 out of 3 properties for sale are actually sold after 7 months, against 1 on 1 in 82 days for the US.
OPISAS business model is based on those principles, and develops them in an even more pronounced way with a further diversification of US destinations all over the East Coast (Florida, Baltimore, Philadelphia, Detroit), in urban areas among the most attractive and promising and selected thanks to our local partners.
The continuous acquisition of a large number of units is performed directly and in full equity. OPISAS is the first to invest, thus becoming the owner and not just a broker. The subsequent valorization of units via full renovation works and a careful due diligence on deeds, benefits from scale economies that keep costs low. At this point, a tenant with good credit history and an exemplar background, all of that cross-checked, is picked, settled and starts paying rental fees. This selection process and the following complete daily management of the real estate are entrusted to a local property management company with over 11 years of expertise.
It is only now that the properties are offered for sale to international investors, in the framework of a well-defined portfolio with tailor-made solutions. The advantage lies in the fact investors benefit from a directly-owned asset, fully managed and moneymaking from day one after closing, a steady yearly net yield from 6% to 11% plus capital gain over time. On top of that, it is provided a comprehensive, all-encompassing service for the whole duration of the investment, from planning to management, up to exit strategy, which contributes delineating an alternative and sound option to the “where to invest” question, so frequently asked in periods of high market volatility.
When facing strong volatility, diversifying your portfolio with safe investments in real assets with a steady yield is a valid alternative for securing both your wealth and revenue.
Having in your pool of assets some diversification options in which invest during high-volatility periods is undoubtedly an excellent strategy for benefitting from steady yields and for securing your wealth. In fact, widening one’s assessment on the so called “alternative investments”, for instance, may allow to bring in stability and security to a portfolio.
Diversification thus appears as one of the fundamentals to attain in order to re-balance the occasional exposition to markets volatility, and at the same time reinforce the soundness of your own investments: a properly diversified and balanced portfolio will overall result more stable than a focused one, performance-wise. The reason is that, by diversifying, it is possible to reduce – even more so as the diversification is comprehensive – the risks connected to a determined category of investments.
A corollary to this first principle is to address one’s attention to sectors and markets unrelated to the investments already active in your portfolio, once decided where to invest. In a nutshell, one should aim at introducing different categories, such as bonds, currencies and real estate, but also to invest in different national markets. By doing so, on an aggregate level, it is possible to reduce volatility by implementing a well-rounded investment portfolio.
Given these two fundamental principles for understanding where to invest with an eye for diversification, aimed at protecting both yield and stability, a well delineated segment as US residential real estate market, with a focus on rental yields can constitute an excellent component for differentiation and consolidation.
That is particularly true when focusing on real estate portfolios highly balanced through a three-fold diversification strategy:
- Invest in operations with a maximum value per property of $ 200,000.
- Invest in different areas of the USA (for instance Florida, or the North-Eastern metropolitan areas such as Philadelphia, Baltimore and Detroit).
-
Invest in different typologies of residential properties (Condo-residences, Townhouses, Single-family homes).
In fact, real estate is by nature a less volatile investment than stock markets, for instance, with a longer timeframe and, last but not least, the certainty of owning a real, tangible property of which you have the keys.
It is for these reasons too that a real estate component in a diversified portfolio should usually make up from 20% to 40% of the invested capital. Moreover, in periods of strong volatility of financial markets, such component can be augmented in order to further stabilize a portfolio.
That is even more significant when focusing on residential real estate investments base on pre-existing opportunities – as, this way, it will be possible to eliminate the whole risk component related to development – and falling into highly sought-after categories by typology, price range and location.
Within real estate, in fact, US rental market historically boasts an even greater stability, since Americans tend to live on rent both for cultural and professional reasons. In some real estate typologies, tenants are over 90% of residents. This social phenomenon determined that the demand for renting had remained substantially steady even in suboptimal economic scenarios, especially in the types of properties that offer the right match of appeal and access (both geographically and financially). After all, people need a roof, and apart from any consideration that makes for a further element of stability.
Back to the main point, why then invest in US real estate? Because the United States are the world’s first residential real estate market, worth over $ 33.3 billion. That translates in a strong heterogeneity of investment options which, when relying on an experienced professional partner, allows to constantly found new profitable opportunities in terms of continuous yield and capital gain over time. On top of that, it is an extremely dynamic market. Residential real estate for sale are “just” 1.4 million for a population of 333 million people. Such limited supply is a hallmark of US market and it determines relatively short time periods for maximizing capital gain and incredibly fast resale. Suffice to say that such supply is on par with the Italian one, whereas population is 5,55 times less. It is also because of this that in Italy only 1 out of 3 properties for sale are actually sold after 7 months, against 1 on 1 in 82 days for the US.
OPISAS business model is based on those principles, and develops them in an even more pronounced way with a further diversification of US destinations all over the East Coast (Florida, Baltimore, Philadelphia, Detroit), in urban areas among the most attractive and promising and selected thanks to our local partners.
The continuous acquisition of a large number of units is performed directly and in full equity. OPISAS is the first to invest, thus becoming the owner and not just a broker. The subsequent valorization of units via full renovation works and a careful due diligence on deeds, benefits from scale economies that keep costs low. At this point, a tenant with good credit history and an exemplar background, all of that cross-checked, is picked, settled and starts paying rental fees. This selection process and the following complete daily management of the real estate are entrusted to a local property management company with over 11 years of expertise.
It is only now that the properties are offered for sale to international investors, in the framework of a well-defined portfolio with tailor-made solutions. The advantage lies in the fact investors benefit from a directly-owned asset, fully managed and moneymaking from day one after closing, a steady yearly net yield from 6% to 11% plus capital gain over time. On top of that, it is provided a comprehensive, all-encompassing service for the whole duration of the investment, from planning to management, up to exit strategy, which contributes delineating an alternative and sound option to the “where to invest” question, so frequently asked in periods of high market volatility.
For more information
For your U.S. real estate investments, you can write to contact@opisas.com to schedule an appointment with an advisor who is an expert of the U.S. real estate market.
