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Invest in real estate
via Keytrade Bank

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As it goes for all asset classes, in a good diversified portfolio, a part of your investment can go to real estate. You could buy a property and rent it, but a direct investment in real estate always creates some risks. The initial investment can be very high, liquidity is above all limited and the operation costs can be high as well.

To get around these risks/disadvantages, you could opt for an indirect and more liquid placement in real estate, namely by investing in shares, real estate funds or trackers (based on the knowledge and experience you have in these products). Like this you can diversify your risk and immediately anticipate on international opportunities, like for instance the recovery of the real estate market in the United States.

Different possibilities are offered to investors showing an interest in real estate according to their knowledge and experience in these financial instruments. Below, you will find some examples. The list of examples is not exhaustive and is provided purely informative.

Trackers

A Tracker is a type of "index fund". It tries to track the performance of a commodity, a stock market index or a basket of shares. It’s in fact a fund or basket of shares, which is continuously quoted on the stock market, just like shares. In our example, the tracker will follow the real estate of a certain region: for example real estate in the whole world, in Europe, in Asia or in the United States.

Some examples:

Stocks

There is an enormous choice in property shares. You can choose from companies specialized in renting shops/shopping centers, offices, semi-industrial real estate, commercial real estate, nursing homes, etc. or a combination of several types of real estate. Moreover you can combine this with a placement in real estate in a certain country or region.

SIR/GVV = Société Immobilière Réglementée / Gereglementeerde Vastgoed Vennootschap

Certificates

A real estate certificate is a kind of placement which gives to the owner the right to participate in the rent or the purchase price of the property to which the certificate is related. It means that a company searches for private investors to finance a project. It can concern the purchase of office buildings, shopping centers or houses.

Some examples of Belgian quoted real estate certificates:

Tax system: Income from real estate certificates has been equated with interests on which therefore 15% withholding tax must be paid. (25% for the issues from before April 1990). The tax treatment depends on the individual situation of each customer and is can be modified later on.

Warrants / Turbos

A Turbo is a stock market quoted investment product that works with a leverage effect, as a result of this, even minor movements of the underlying value (such as shares, indexes and raw materials) can strongly influence the value of the turbo.

On the secured site click on trading, than on invest and afterwards on turbos. Type an underlying value for example: Cofinimmo, Corio, Rodamco, etc. The system will automatically search for all Turbos on the specified equity.

Funds

Real estate funds are funds which invest in real estate and property. These can be investments in ordinary buildings, in offices or even in shopping centers. In addition real estate funds are spread geographically: the buildings in which the fund invests are often spread over several regions or countries. The advantage of real estate funds in respect to a placement in bricks (the purchase of a house) is of course liquidity. Real estate funds are daily tradable.

Keytrade Bank offers different funds that invest in real estate. You can find these by filtering on the category “Real Estate” in the search engine.

  • Pay attention!
  • This page does not include investment advice or recommendations, nor a financial analysis. Nothing in this page may be construed as information with a contractual value of any sort whatsoever. This page is intended for information only. Keytrade Bank cannot be held liable for any decision made based on the information contained in this page, nor for its use by third parties. Before investing in financial instruments, please read carefully the document "Overview of the principal characteristics and risks of financial instruments"