Investing in property funds

Everything you need to know. Property has long been known as one of the most stable ways to build wealth. But buying, financing, letting and maintaining a property yourself is not for everyone. Investing in property funds offers an alternative: you benefit from property returns without the burdens of ownership.

Fixed interest, no price fluctuations
Monthly payout
All managed in-house

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Canal houses in the evening sun with terraces on a square

What is a property fund?

A property fund is an investment structure in which several investors jointly contribute capital to finance property. The fund buys, manages and operates the property on behalf of the participants and pays out the proceeds in the form of interest, dividend or profit distribution.

Instead of buying a property yourself, you participate through bonds or units in a fund that arranges this for you. You benefit from rental income and increases in value, without having to negotiate with tenants, arrange maintenance or apply for financing yourself.

Why invest in a property fund?

Investing money in property funds is a smart way to grow your wealth, without having to buy, finance or manage a property yourself. You benefit from the advantages of property, with the convenience of a fund that arranges everything for you.

01

Stable value growth

Property has a long history of stable value development, even in times of economic uncertainty.

02

Protection against inflation

While the value of money can fall, rental income and property values often rise with it. That way your wealth retains its purchasing power.

03

Passive return

No maintenance, no tenant conversations, no administration. The fund takes care of it, you receive your return monthly.

Which types of property funds are there?

Not every property fund works the same way. It is important to know the differences before you make a choice.

Listed property funds (REITs)

Real Estate Investment Trusts (REITs) are listed companies that invest in property and are traded in the same way as ordinary shares. Their income generally comes from rental income and, in the case of mortgage REITs, from interest on property loans.

Unlisted property funds

With this type of fund you do not buy a share traded on a stock exchange, but participate through a bond or unit with a predetermined term.

Features

Tradable every trading day at the current market price
Legally required to pay out a large part of the profit, usually at least 90%, as dividend
You can start with a small amount, comparable to a regular share purchase
Spreading across several countries or property sectors within one fund is often possible

Features

The value of the property is determined periodically, for example once a quarter, rather than continuously as on the stock exchange
A fixed term, ranging from a few months to several years
A fixed entry amount, for example €5,000, €10,000 or €100,000, depending on the fund
Often focused on a specific strategy or property portfolio, with detailed information per property

Pros

Great flexibility: you can buy or sell at almost any time
Low entry threshold
Subject to strict stock exchange rules, which ensures a high level of transparency

Pros

A more stable value development, without the daily price fluctuations seen on the stock exchange
With funds that work with bonds, the return is often contractually fixed
Detailed insight into the underlying properties: location, tenant, contract duration and state of maintenance

Cons

The price depends not only on the value of the property itself, but is also influenced by market sentiment, interest rate developments and the wider economy
Price fluctuations can be larger than investors often expect from a property investment
The return is less predictable than with a fund with a fixed interest rate

Cons

Your participation amount cannot be withdrawn freely: the capital remains locked until the end of the term
Selling your participation in the interim is usually difficult or not possible
Funds with a high minimum participation amount are less accessible for some investors

How Zeker Wonen Fondsen does it

At Zeker Wonen Fondsen we deliberately choose a simple, transparent structure without surprises. That way of working applies to all our funds, whether you invest for the long term or want your capital to earn a return for a shorter period.

Aerial view of a residential area by the water

Fixed interest, no price fluctuations01 / 07

Unlike listed property funds, we work with fixed interest rates. Zeker Wonen Fonds III offers 6 to 7% per year, the Zeker Wonen Bridge Fonds 6.5% per year. These percentages are contractually fixed and are not affected by market developments or stock market fluctuations. You know exactly where you stand in advance.

With both funds, the interest is paid into your account every month. No waiting for the quarter, no uncertainty about timing. This makes our funds suitable for investors looking for a predictable, recurring cash flow.

Where many property funds depend on external parties for purchase, renovation and letting, Zeker Wonen Fondsen carries this out entirely internally. From the selection of properties to the day-to-day letting administration: everything is done under our own direction. This ensures faster decision-making, more control over quality and no unexpected costs from external parties.

We buy existing, dated property, often in let condition or at a lower price than the vacant value. By then renovating and upgrading this property, aiming for energy label A or B, value is created at an early stage. This provides an extra buffer between your participation amount and the market value of the underlying property.

A first-ranking mortgage is established on every property within Fonds III in favour of the independent Stichting Obligatiehouders Wonen Fondsen. The foundation is thereby, on behalf of all investors, the first mortgagee on the property. In a forced sale, investors are paid first from the proceeds through the foundation.

In addition to the fixed interest of 6.5% per year, a profit share may apply with the Zeker Wonen Bridge Fonds, depending on the transaction. Investors thereby share in the result of the property transaction to which their participation amount is linked. Where the fixed interest provides a predictable monthly cash flow, the profit share offers room for additional return when a project turns out better than expected.

The Stichting Obligatiehouders Wonen Fondsen is fully independent of Zeker Wonen Fondsen B.V. and acts solely in the interests of the investors. The foundation supervises compliance with the fund terms, safeguards the mortgage rights and can act on behalf of investors when necessary.

How is the return built up?

Behind every return percentage are two sources of income that behave completely differently.

First source

Direct return

Rental income forms the first source. Tenants pay every month, creating a recurring cash flow that the fund periodically passes on to investors. This part is stable and can be estimated well in advance.

Second source

Indirect return

The second source is the value of the property itself. If this rises during the term, that benefit usually only becomes available when the property is sold. This part is therefore less visible along the way and less predictable.

5 to 9%per year, in practice, depending on property, strategy and risk

Together these two determine what a fund yields. In practice this usually comes down to 5 to 9% per year, depending on the type of property, the fund's strategy and how much risk is taken.

Want to know more? Get the brochure

After your request, we will contact you personally to verify your details and answer your questions. You will then receive the brochure.

Common questions about investing in property funds

Investing raises questions. Naturally, it is your money after all. That is why we have listed the most frequently asked questions, so you know exactly where you stand.

Ask a question

For our current funds (Fonds III and the Bridge Fonds), the interest is contractually fixed in the bond terms for the full term. The interest is paid from the rental income of the property, with additional security such as the first-ranking mortgage with Fonds III. With the Bridge Fonds, a profit share may follow depending on the transaction. As with any investment, risks remain, so please also read our risks.

That depends on the fund. With Zeker Wonen Fonds III you can participate from €5,000, with increases in steps of €1,000, and from €100,000 in steps of €25,000. From €25,000 an interest rate of 6.5% applies, and from €100,000 you receive 7% per year. With the Zeker Wonen Bridge Fonds, participation starts from €100,000, with increases in steps of €25,000 while the fund is open.

This depends on the type of fund. With listed REITs you can enter and exit daily. With unlisted funds such as Zeker Wonen Fonds III and the Bridge Fonds, the term is fixed and early exit is not possible. This protects the stability of the fund for all investors.

Investing through Zeker Wonen Fondsen suits private and corporate investors who put security above maximum return, want a predictable monthly payout and do not want to buy, finance or manage property themselves. It is less suitable for investors who want access to their money in the short term, are looking for a speculative or variable return, or do not want to accept the risks that come with investing.