Investments in real estate funds are also increasingly disadvantaged. In the past 50 years, open-ended real estate funds have been considered safe, with virtually no losses for investors. The picture has turned in recent years. You may redeem shares in open-ended real estate funds currently and in the coming years with less freedom. Make a visit to for a clearer picture on this matter.

What Does the Studies Show

According to a study by the rating agency Scope, the funds raised for the funds have already shrunk by more than half. The industry association found an even more drastic decrease in comparison to the first four months of 2013 and 2014: instead of $ 1.6 billion in the previous year, it is currently only $ 353 million. This corresponds to a decrease of 75%.

The reason is the ever-new reforms for open-ended real estate funds. Until now, as a shareholder, you have been able to return shares worth up to $ 30,000 at any time. In the meantime, you must hold the shares for at least 2 years, and there is also a 12-month notice period. This is a reaction to the fact that many investors wanted to sell their shares when the market collapsed. In short: with open-ended real estate funds, you would be far too inflexible in the future.

Real Estate Fund

With closed real estate funds, you even participate in real estate in an entrepreneurial way. The risk of bad investments is therefore high: you can hardly intervene in the management apart from a few rights in the shareholders’ meetings. On the other hand, you are fully responsible for the commercial development of a single property. This means that such an investment will practically be prohibited in the future if you are not a member of the industry yourself.

How to avoid the most dangerous real estate pitfalls

However, the most beautiful project is of no use if the investment is not as safe as possible. Real estate investments involve numerous pitfalls that you should avoid as much as possible.

Organize the most important documents

You can buy real estate you have used yourself from the existing building whereby you would then have to set aside certain claims or build a new one. In both cases, take enough time for important documents:

Billing documents with service providers: If you look at the bills of energy suppliers, chimney sweeps and craftsmen, you have several information: What has been done? How much is this work? How regularly do these activities return? Do the bills look like necessary repairs that could be followed by extensive renovation?

Building plans: Whether you are building a new building or purchasing an existing property the basis of all buildings is building plans. If in doubt, have the construction plans examined briefly yourself because inconspicuous details can have considerable commercial effects. This applies to the wall thicknesses, floor materials and thicknesses, inflows and outflows and other details.

Appraisals: Have the existing appraisals for the property shown. To do this, ask the previous owner in writing to hand over to you all existing reports and documents similar to reports. In case of doubt, you can prove mistakes or intentionally withheld documents.

Extract from the land register: Look at the extracts from the land registers that show all the ownership. You can obtain such excerpts from There you state that you as a potential buyer have a legitimate interest, possibly also a power of attorney from the owner.

Energy performance certificate: The energy performance certificate for existing properties is now mandatory.