Wednesday, 30 March 2011
Tuesday, 29 March 2011
Emerging cash-cow assets!
Savvy asset builders are in pole position to acquire the most lucrative property assets around, KT Cunnigham reports.
Forget the stock exchange, ISAs’, National saving accounts, CD’s, forex and buy-to-let investments, as the returns on such investment schemes are performing below par, averaging 3% - 4% a year. Further, adding insult to injury, is when you deduct tax(es), inflation and/or interest rate cost from the returns on such schemes, you are left with below zero returns.
Clearly, the 2007/08 financial crisis has not only devalued investors' asset but has decimated the potential returns that that can be accumulated from buying these traditional investment products. Contentious as it may seem, most traditional investment schemes are heading for the graveyard after years of poor performance and unhealthy profits. As a consequence, many investors are forced to abandon mainstream investment opportunities and instead, seek out safe heavens to protect their hard earned money. Experts would agree that the most unwise thing to do in times of economic turmoil is to tie-up one’s money for any period of time in any investment scheme only to receive zero returns/profits at the end. So, if your money is not working for you, you misght as well stick it under your mattress. Further still, the fact that such traditional schemes are, nowadays less promoted by fund managers is a clear sign that such products are nearing the end of their life cycle. No wonder smart investors are avoiding them at all cost.
Nevertheless, there is a new breed of investment opportunities emerging amid the current financial and economic rubble. A new asset class that will surely dominate the new decade (2011-2020). Green estates are increasingly growing in demand. Also, they are not only proving to be resilient, but are producing double digit returns and excellent yields.
Given that green-energy technology (or clean tech revolution) is position very high on every government's agenda around the globe. Moreover, green estates will continue to court attention from lenders and cash rich investors for decades to come. It is only a matter of time before the masses jump on the bandwagon, but now is the opportune moment to capitalise on this lucrative asset class.
This decade will be a very exciting era for green estates, as the major drivers of demand are electric vehicles and huge eco-friendly, energy efficient engines that will be installed in planes, ships, lorries etc. With over 600 million CO2 gas gosling cars to be replaced worldwide by EVs, the demand for green electricity is exponential. Green estates are already topping the shopping list of many private equity firms, institutional investors and savvy asset builders
So, what is green estate? Green estate is a type of commercial real estate which embraces business tenants/operators of green energy projects. The green estates sector, consist of a variety of property assets such as, Solar car parks, biogass mills, wind farms, solar farms, biofuel refinery, vertical greenhouses and resource recovery park to name a few.
Read part two of this article for more information; published next month.
Forget the stock exchange, ISAs’, National saving accounts, CD’s, forex and buy-to-let investments, as the returns on such investment schemes are performing below par, averaging 3% - 4% a year. Further, adding insult to injury, is when you deduct tax(es), inflation and/or interest rate cost from the returns on such schemes, you are left with below zero returns.
Clearly, the 2007/08 financial crisis has not only devalued investors' asset but has decimated the potential returns that that can be accumulated from buying these traditional investment products. Contentious as it may seem, most traditional investment schemes are heading for the graveyard after years of poor performance and unhealthy profits. As a consequence, many investors are forced to abandon mainstream investment opportunities and instead, seek out safe heavens to protect their hard earned money. Experts would agree that the most unwise thing to do in times of economic turmoil is to tie-up one’s money for any period of time in any investment scheme only to receive zero returns/profits at the end. So, if your money is not working for you, you misght as well stick it under your mattress. Further still, the fact that such traditional schemes are, nowadays less promoted by fund managers is a clear sign that such products are nearing the end of their life cycle. No wonder smart investors are avoiding them at all cost.
Nevertheless, there is a new breed of investment opportunities emerging amid the current financial and economic rubble. A new asset class that will surely dominate the new decade (2011-2020). Green estates are increasingly growing in demand. Also, they are not only proving to be resilient, but are producing double digit returns and excellent yields.
Given that green-energy technology (or clean tech revolution) is position very high on every government's agenda around the globe. Moreover, green estates will continue to court attention from lenders and cash rich investors for decades to come. It is only a matter of time before the masses jump on the bandwagon, but now is the opportune moment to capitalise on this lucrative asset class.
This decade will be a very exciting era for green estates, as the major drivers of demand are electric vehicles and huge eco-friendly, energy efficient engines that will be installed in planes, ships, lorries etc. With over 600 million CO2 gas gosling cars to be replaced worldwide by EVs, the demand for green electricity is exponential. Green estates are already topping the shopping list of many private equity firms, institutional investors and savvy asset builders
So, what is green estate? Green estate is a type of commercial real estate which embraces business tenants/operators of green energy projects. The green estates sector, consist of a variety of property assets such as, Solar car parks, biogass mills, wind farms, solar farms, biofuel refinery, vertical greenhouses and resource recovery park to name a few.
Read part two of this article for more information; published next month.
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