How do you feel about investing in a REIT in this market?
February 5, 2010 by
Filed under realestate rentals
A commercial REIT is a realestate investment trust that manages high end commecial rental properties.
February 5, 2010 by
Filed under realestate rentals
A commercial REIT is a realestate investment trust that manages high end commecial rental properties.
Powered by Yahoo! Answers
Apartment REITs might be a good bet. All of these folks who bought McMansions they really could not afford are going to be looking to move back to their old apartments.
I would feel good about it. baby boomers are aging and they have a ton of money. Stocks are a bit cheaper now too. May be time to load up.
There is a very strong likelyhood that the mortgage debacle will force the US into a strong recesssion. Recession emans less people buying goods. Less people buying goods mean commrecial interests close or at least cut back, which means income at commercial property goes down.
This is a bad formula for REITs
I feel very good about it, especially for the long term. REITS are much cheaper than they were a few months ago.
I prefer Real Estate mutual funds to individual REITS, though – you get diversification among different types of properties (commercial, residential, even things like privately owned prisons, parking garages, shopping malls, etc.) AND among different parts of the country.
I’m currently in one of the best ones – the T. Rowe Price Real Estate Fund (TRREX).
Good luck!
If you are really considering investing in REITs … take a look at http://www.investorvillage.com
Go to the REIT board there…you will find a great number of experienced investors discussing all aspects of that market.
You can read all you want, but if you want to take part or ask a question, you have to register…but that’s no big thing…it’s free and simply loaded with info on all aspects of investing and individual stocks.
Asset allocation is a key component of diversification. What percentage of your pie will you put into REIT’s? If 5-15% then buy away.