LOS REITS (REAL ESTATE INVESTMENT TRUST) Y LOS FONDOS DE INVERSIÓN INMOBILIARIA: ALTERNATIVAS A LA CRISIS ECONÓMICA QUE VIVE EL SECTOR PARA LOS PEQUEÑOS Y MEDIANOS AHORRADORES.

Abstract

In our opinion, in the current context of economic crisis, you just cannot avoid talking about investment funds. The rules of the game in the real estate market have changed. The «new real estate picture» X-rayed in this research paper shows clearly that real estate investment funds in the context of the sector's economic crisis have the potential to become the star product. Or, to put it another way, they can prove a feasible weapon with which investors can fight their way past the real estate crisis. Let's trust that we can convince investors of this. Legislators, too; they have to be willing to enact certain legislative reforms so that already-completed properties (shopping centres, permanent homes and second homes, homes for the elderly) are not the only properties that can be contributed to investment funds. The rules of the real estate market game are necessarily changing. The traditional forms of investment, too. In the «new real estate picture», investors are jittery. They're not buying, selling or investing. They're even thinking about withdrawing their money from the bank, because they don't trust financial institutions, either. And they don't have enough financing to cover the costs of land development, construction and marketing. They need a shot of security, because they are really and truly scared. In this context, real estate investment funds can offer investors a secure alternative that restores their lost returns. There are two possibilities: They can invest their savings in the fund, or they can contribute their properties to the fund so that the fund can manage, develop, build and rent the properties in a professional manner. Now, this can be done only if there is an adequate tax incentive policy, through better leasing conditions under the Urban Lease Act and an adequate interpretation or reform of the Collective Investment Institution Act to expand the range of real estate that can be invested in. That is the only way to dump the ballast holding down Spanish real estate investment funds, keep REITs from landing and help our real estate investment funds take off.