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JMMB Real Estate Fund offers up to 78% return (Advertorial)

Published:Monday | July 15, 2019 | 12:00 AM

Financial experts tout real estate as one of the most viable assets you can invest in, as it typically offers investors above-average returns, with less risk, when compared to stocks, and gives you the opportunity to diversify your investment portfolio.

Christopher Walker, CEO, JMMB Fund Managers, adds, “one avenue that investors can leverage is the uptick in the real estate industry by investing in a real estate fund, such as the JMMB Optimum Capital (Real Estate) Fund, that gave up to 78% return to investors, over the last five years (December 2013- December 2018).”

The CEO, in encouraging investors to take advantage of the uptick in the real estate market now, explains that “the developments in the real estate sector such as the increased availability of financial options offered by financial institutions and the National Housing Trust (NHT), in addition to the recent reduction in transfer tax, make housing more accessible. As such, this sector provides an opportunity for investors to make real returns.”

Start Investing in Real Estate

Although investing in real estate may seem daunting, as the traditional approach of buying an investment property, either for rental, or to flip it at a profit, usually requires a deposit to cover some of the upfront costs associated with purchasing a property for investment and /or renovation, purchasing via a real estate fund is a viable alternative.

You can get started by buying the minimum 500 units required to be a part of the JMMB Optimum Capital (Real Estate) Fund for J$17,600 (price as at June 24, 2019). This allows you to then leverage the above-average returns that investing in real estate provides.

JMMB Optimum Capital (Real Estate) Fund has given investors, who remained in the fund, for the six-month period ending June 18, 2019, a 17.46 %* return.  This return also outperforms inflation over the same six-month period, which was approximately 4.8%. In fact, the return is above the 44% - 50%*** price appreciation on properties in the corporate area, according to the president of Realtors Association of Jamaica (RAJ), Andrew James.

Investing in a fund, like the JMMB Optimum Capital (Real Estate) Fund, allows you to be a part of a pool of unit holders who collectively own a portfolio of assets, which consist of residential and commercial properties, in addition to fixed income assets such as bonds and stocks/equities.

Additionally, the JMMB Optimum Capital (Real Estate) Fund is managed by an expert financier, called a fund manager, whose role is to ensure that the best investment decisions are made on behalf of the fund. The fund manager is responsible for overseeing the daily operations of these properties and so you forego any hassle associated with being a landlord.

How Does the Fund Work?

This investment will provide you, as an investor, with continuous earnings from the increase in the unit price of the JMMB Optimum Capital (Real Estate) Fund, which generates income from: rental - in both USD and JMD; the capital gains on revaluation upon the sale of properties; and interest income from the fixed income holdings. A profit (capital gains) is realised when you sell units at a higher value than you had purchased. 

The unit price may vary from time to time, depending on the performance of the Fund, which is influenced by the valuation of the different assets – real estate, stocks and fixed income - and market conditions. You can, therefore, expect fluctuations in the daily unit price. 

Units in this Fund can also be sold at any time, to realise a profit, thereby giving you the flexibility of accessing funds, should the need arise. It is recommended, however, that, similar to investing in real estate directly by acquisition of a property for resale or for rental, you will need to hold this investment for the medium to long-term, at least the recommended five years, to reap the best returns. The earnings from this investment can also assist you in making your home ownership goal a reality, or to pursue other financial goals.

With the boom in the real estate market locally, now is the time to start investing and doing so through JMMB Optimum Capital (Real Estate) Fund opens up a world of possibilities.

To open an account, you will need the requisite documentation including national identification; proof of address and income; and tax registration number (TRN) to get started.

Want to start earning more with JMMB Optimum Capital (Real Estate Fund)? Click this link:

* Based on six-month performance between January 18 to June 18, with no withdrawals being made from the fund.

** Based on the fund’s performance between December 2013 and December 2018, with no withdrawals.

***This is based on avg. housing appreciation of 2-4 bedroom residential property in Kingston 19 & 20, between 2010 and 2018.