Real estate stock: Are you one of those people who love the idea of putting money away to make sure you have it if you need it down the road, but never really gets around to it? Perhaps you have a tough time just leaving the money in the bank and when you see something that looks like it would be nice to have you cave in and make a purchase. Either that or you look at the low interest that is coming in from banks these days and think 'what's the use?' as you're not even making interest that will meet inflation.
If this sounds like you, you may need to look at another way to save your money and a REIT may be the answer. A REIT is a real estate investment trust. This is essentially a mutual fund for real estate that will be used to buy, build or manage real estate ventures.
Those who are in REITs purchase shares, just like you would any stock, mutual funds or commodities on the stock market and allow that money to grow. In this case the growth comes from the lease, rent or mortgage insurance paid to the fund. The average return on REITs is 6-10%, which is triple, or quadruple of what most savings plans will net you in the bank.
Additionally, for the most part, REITs are pretty strong investments. Most of them are based on tangible pieces of property that are not going anywhere, so while values may fluctuate, they will still have some value.
Unlike buying real pieces of property, which means a lot of money, paperwork, and quite the hassle finding a buyer if you want to sell, REITs will allow you to instead sell your shares just like you would any other stock, mutual fund or commodities on the stock market.
If you're smart about this type of investment, you will treat it as a savings plan. As you get the money to purchase shares, make a purchase and then allow your annual dividends to be rolled back into purchase more shares. If you keep making your purchases on a regular time frame and let them grow. You may be surprised at just how much it grows for you to have down the road when you need it.
With the recent down market, there's no time like the present to buy. In the immortal words of multi-millionaire T. Harv. Eker, "Don't wait to buy real estate, buy real estate and wait."
If you have never heard of REITs or worked with them before, don't let that be a deterrent to you. Simply by logging on to a website such as REITBuyer.com you will be able to learn everything you need to know to be investing like a pro in no time and start that savings plan.
If you're completely new to this, begin with the basics. Make your way through the website learning all you need to know about REITs and then choose the ones that are best for you. The best part about REITBuyer.com is that you can then make your purchase on their website, as they are a full service investing real estate broker, and watch your portfolio all in the same place.
All about REITs – Real Estate Investment Trusts
8 years ago