Fees & Charges

Fee Structure

At Y Real Estate, we believe in complete transparency when it comes to fees. Below is a comprehensive breakdown of the fees you can expect when investing with us. Our goal is to ensure you have a clear understanding of the costs associated with your investment so you can plan for the long term with confidence.

1. Management Fees

The Management Fee covers the essential costs of running Y Real Estate’s investment platform, including property acquisition, maintenance, and ongoing operational expenses. This fee ensures that all the properties in the portfolio are properly managed, maintained to the highest standards, and positioned to deliver the best possible returns to our investors.

  • How It Works: The management fee is a small percentage of your investment’s annual profits and is deducted annually from your returns. This means that the fee is directly tied to the performance of your investment—if the portfolio performs well, your management fee will remain proportional to your earnings.

  • Fee Rate: The exact percentage varies based on your investment amount, but it typically ranges from 1% to 2% of the total profit earned in a given year. The management fee is only deducted after your returns are calculated, ensuring that your investment growth is the primary priority.

  • What the Fee Covers:

    • Property acquisition and legal costs
    • Property management (including regular maintenance and repairs)
    • Marketing and promotion for short-term holiday rentals
    • Operational costs such as taxes, insurance, and local regulations
    • Administration of your account and reporting on your portfolio’s performance

2. Premature Withdrawal Fees

At Y Real Estate, we understand that circumstances may change, and you might need access to your investment before the intended term is complete. While we encourage long-term investment to maximize returns, we do provide an option for early withdrawal. However, to maintain the integrity of the investment pool and to protect other investors, we apply a Premature Withdrawal Fee for those who choose to exit early.

  • How It Works: If you decide to withdraw your funds before the standard investment term ends, you will incur a penalty fee. This fee helps offset the costs and potential disruptions caused by the early withdrawal, ensuring the rest of the investment pool remains unaffected.

  • Fee Calculation: The Premature Withdrawal Fee is calculated based on how early you withdraw your funds compared to the agreed-upon investment term. The earlier the withdrawal, the higher the fee percentage. Typically, the fee ranges from 5% to 15% of the amount withdrawn, depending on the time left in the investment cycle.

  • Example:

    • If you invested £50,000 and wish to withdraw after one year in a five-year investment term, a 5% fee would apply, resulting in a £2,500 withdrawal fee.
    • If you withdraw closer to the end of the investment term, the fee might be lower, reflecting a smaller impact on the pool.

  • Withdrawal Process: To initiate an early withdrawal, investors must contact our support team. We will guide you through the process, explain the fee clearly, and work with you to ensure a smooth exit.

3. Additional Details on Fees

  • No Hidden Fees: We believe in full transparency—there are no hidden or surprise fees. The management and premature withdrawal fees are the only fees that will ever apply to your investment with Y Real Estate. We do not charge additional transaction fees, entry fees, or performance fees beyond what has been stated.

  • How Fees Are Deducted: All fees are automatically deducted from your annual returns, so you won’t have to worry about making separate payments. You will see a clear breakdown of any fees applied in your annual performance report.

Why These Fees Matter

Fees are an essential part of maintaining the quality and stability of your investment. Here’s why the fees we charge make a difference:

  1. Professional Property Management: Our management fee ensures that all properties in the Y Real Estate portfolio are meticulously maintained and operated by experienced professionals. This helps maximize the profitability of each property while minimizing risks related to neglect or poor management.

  2. Long-Term Growth: The Premature Withdrawal Fee helps protect the overall investment pool by discouraging frequent withdrawals that could destabilize the fund. This ensures that investors who stay committed to the full investment term benefit from stable, growing returns.

  3. Peace of Mind: With a clear fee structure in place, you can focus on the growth of your investment without worrying about unpredictable costs.

Frequently Asked Questions About Fees

Q: Why is there a management fee?
The management fee is in place to cover the costs of acquiring, maintaining, and operating the properties in our portfolio. It ensures that all properties are kept in prime condition and are properly marketed to maximize rental income, ultimately benefiting your returns.

Q: When is the management fee deducted?
The management fee is deducted annually, directly from the returns generated by your investment. It’s only charged if your investment generates profits, ensuring it’s directly tied to the performance of the portfolio.

Q: Can I avoid the premature withdrawal fee?
The premature withdrawal fee only applies if you choose to exit your investment before the end of the agreed investment term. If you stay committed to the full investment cycle, you will not incur this fee.

Q: Are there any other hidden fees?
No, there are no hidden fees. Y Real Estate is committed to transparency, and all applicable fees are outlined clearly from the start.

Conclusion

Understanding the fee structure at Y Real Estate ensures you can make informed decisions about your investment. By maintaining a transparent and straightforward approach, we provide you with peace of mind while maximizing the potential of your investment.

If you have any questions or need further clarification regarding our fee structure, please don’t hesitate to Contact Us. Our team is here to guide you through every step of your investment journey.