Looking for the next real estate play? Real Estate Investment Trusts and Real Estate Funds are worth a look.
In the US, a Wall Street Journal article states; "The average real-estate fund, which lost more than 14% on average in 2007, is up nearly 5.6% this year through May 12, which makes it the second-best performing U.S. stock fund group this year, behind the hot natural-resources funds category."
The Jerusalem Post in Israel quoted; "The current crisis that started with the sub-prime fiasco has [affected] real estate prices all over the world. It is now possible to buy real estate for rental purposes at prices that are lower by up to 20% from a year ago, and I believe prices will fall more. The current prices are hurting many, but for those companies or individuals with ready cash, it has created attractive investment opportunities. "
If you are interested in these real estate investment vehicles, China is one of the places to put on your radar. A storey in The Sydney Morning Herald printed this; "As the fastest growing real estate market, with substantial commercial property assets that are of investment grade, China has the potential to be an REIT phenomenon if the legislation for such a market is put in place."
Final Thoughts: There are several real estate markets around the world that are still growing.
In markets such as the US, the price to get into these types of investments are cheap compared to previous levels.
There is talk out there in the msm covering how these trusts and funds got beat down in 2007 and the upside potential that is beginning to take shape. Now is the time to investigate. If you wait to hear about it on the evening news before you make a move...well need I say more.
Today's Quote: Owning a home is a keystone of wealth.. both financial affluence and emotional security. Suze Orman
Wednesday, May 14, 2008
REIT's and Real Estate Funds
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