Some REIT Markets are Stronger than Others
If you are worried about the state of the economy and what you should do with your investing dollars, you may be able to take a little bit of solace in knowing that things are not always as bad as they seem. Perhaps you just need to look at them differently.
Let's look at real estate investing. Many people like the idea of REITs or real estate investment trusts because they know real estate is always a sound investment. After all, the worst-case scenario is a piece of property loses a little value, but it will never become worthless and always has some trading clout.
But with the housing market struggling in the US over the past year, you may be wondering just how smart it is to fund real estate investment ventures.
The first thing you need to keep in mind is that real estate investment is not only available in the US. There are REIT funds that are putting money into real estate all over the world. In many developing countries real estate developers have so many projects they don't know what to do as countries develop and need new infrastructure. Getting in on one of these investing options could reap large rewards.
There are a wide variety of options available in these countries where you can invest your money. You could look into commercial real estate funds that will help businesses grow in these budding countries. Another option is to have put your money into residential real estate fund programs in the cities of these developing countries. When a country is developing and industrializing, people often move to the city to take part in the growth. This means those residential real estate investments stand to make a great profit.
But how do you know what markets are about to make that boom or are just starting to hit their stride so you know where to invest? This is going to take a little research on your part. If you are a pro in the real estate investing arena, you can do this yourself. If you're not, you may prefer to get a helping hand from some pros.
A website like REITBuyer.com is a great place to start. Not only are they real estate brokers that can help you purchase the REIT funds you want, but they are also a great place to get all the information you need to know which REITs are the best to buy.
By going through REITBuyer.com you will be able to get a better look at the real estate investment options in other countries. You will also be able to find reports and information about the expectations of real estate development in these areas.
Next you will get a peek into the real estate management plans that are in place for those countries. You will see the kinds of real estate listings they want to create or those that they already own and want to manage.
Once you have started deciding which are best for you, you can even have REITbuyer.com do the rest of the work and add the investments that you like to your portfolio. It really doesn't get much better than that.
Tuesday, February 24, 2009
The Only Place You Can Be Sure You Will NOT Lose Everything in a BAD Recession
Real Estate Investments to See Real Profits
Many investors say they want two things in their investments – a return on their money and some security that their money will not be here today and gone tomorrow. When it comes to trading on the stock market or purchasing mutual funds, those are usually two things that cannot be promised. When you purchase stocks, you never know if the company is going to have a bad quarter, losing you a chunk of your investment or if they are going to fail altogether, taking your money with them.
The only place you can really be sure that you will not lose everything in a bad session is in real estate.
Even if the bottom falls out of the real estate market, real estate that has been purchased is an asset. So, while there may be losses in a major downturn, you won't lose everything. Often in this case if you were to hold on for a little while and be patient it will all bounce back and you'll be seeing dividends come in again like nothing ever happened.
There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of money in hand to be able to buy a piece of property or a building outright. For most people this is not a possibility as this means having tens to hundreds of thousands of dollars in hand to invest.
There is another option however. Instead, why not be a part of a real estate investment trust or REIT. A REIT is where you are a shareholder in property ownership. This means you will purchase shares that go into a collective pot that is used to purchase and maintain properties. These properties could be anything from commercial buildings that are being leased out to residential buildings that are rented out.
The way a REIT works is that as the real estate management group makes a profit, that profit will be given to you as a dividend. Laws dictate that at least 90 percent of the profits from a REIT have to be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.
That other 10 percent of the profit from the REIT will go back into the management of the properties or possible improvement or expansions that will give you even more return on your investment dollar in the future.
Unlike regular real estate purchases, there is another benefit to REITs. If you ever needed to pull some of your money out it is as easy as selling a few shares instead of having to sell a property and go through all those hassles.
Many investors say they want two things in their investments – a return on their money and some security that their money will not be here today and gone tomorrow. When it comes to trading on the stock market or purchasing mutual funds, those are usually two things that cannot be promised. When you purchase stocks, you never know if the company is going to have a bad quarter, losing you a chunk of your investment or if they are going to fail altogether, taking your money with them.
The only place you can really be sure that you will not lose everything in a bad session is in real estate.
Even if the bottom falls out of the real estate market, real estate that has been purchased is an asset. So, while there may be losses in a major downturn, you won't lose everything. Often in this case if you were to hold on for a little while and be patient it will all bounce back and you'll be seeing dividends come in again like nothing ever happened.
There are two ways to invest in real estate. The first is to make a real estate purchase. For the most part this means having a lot of money in hand to be able to buy a piece of property or a building outright. For most people this is not a possibility as this means having tens to hundreds of thousands of dollars in hand to invest.
There is another option however. Instead, why not be a part of a real estate investment trust or REIT. A REIT is where you are a shareholder in property ownership. This means you will purchase shares that go into a collective pot that is used to purchase and maintain properties. These properties could be anything from commercial buildings that are being leased out to residential buildings that are rented out.
The way a REIT works is that as the real estate management group makes a profit, that profit will be given to you as a dividend. Laws dictate that at least 90 percent of the profits from a REIT have to be returned to the shareholders, so barring a major downturn in the economy you know you will get a return on your investment year after year.
That other 10 percent of the profit from the REIT will go back into the management of the properties or possible improvement or expansions that will give you even more return on your investment dollar in the future.
Unlike regular real estate purchases, there is another benefit to REITs. If you ever needed to pull some of your money out it is as easy as selling a few shares instead of having to sell a property and go through all those hassles.
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