Wednesday, March 11, 2009

Buy UK REITs - Buy Now, Sell High

With so many people panicking after this past year's investment woes, there are some great deals to be had in the investment world. One of the best ones out there is in the real estate arena.

A lot of people are reluctant to put out any type of money into investments right now, thinking that since it's a bad time, things must be getting ready to get worse and worse. Well in real estate, this is not possible.

Think about this for a minute. Unless it is going to sink into the ocean or completely disappear into a black hole, the property behind a real estate investment will always be around. Sure, it can lose money and have a tough time, but it will be around and still have value.

Another thing to keep in mind is right now, as many other investors are doing what you are doing and worrying, those who move forward and make a buy will be the ones who have the most to gain as the market starts to rise again.

It's like Albert Einstein said, "In the middle of every difficulty lies opportunity". While he may have been talking about science, it also works for the world of economics and investments. Sure we are in the midst of a difficult economic time when it seems every stock, bond and mutual fund has dropped through the floor and that any investment is doomed to fail. But, what if you look at the opportunity side of that. If you look around, the real estate market has bottomed out for the most part. That means the current opportunity is in investing in more of it and seeing a return on that investment.

Now that I have you thinking of opportunity, you may be thinking there is no way you will be able to afford purchasing properties right now. No one said you had to buy properties outright. Instead, why not purchase shares of property? This can be accomplished through real estate investment trusts or REITs. Being a part of a REIT allows you to purchase shares of a real estate development or real estate management company and still be in on the market without having to buy a whole property yourself.

In a REIT when the management group profits (through leases, rent or mortgage interest) at least 90% of that profit must be passed on to the investors. This will come in the form of a dividend. In many cases you will see a 6-10% return on your investment every year, as that is the average. In some years you may even see your real estate out perform the stock market.

Investing in REITs is easy. They are publicly traded and you can go to a website like REITBuyer.com to research the REITs you are interested in, look at their past, possible futures and even make the purchase all in the same place, as they are an investing real estate broker.

We're at a point in the economic tide right now where it's either time to make a move or stay out of the game. Only those who play can win.

Investing in UK Real Estate Investment Trusts Like Cedar Shopping Centers

Have you considered investing in United Kingdom REITs - Cedar Shopping Centers, Inc., a self-managed UK real estate investment trust focused on supermarket-anchored shopping centers and drug store-anchored convenience centers located predominantly in the Northeast. Since their public offering in October 2003, Cedar has realized significant growth in assets and shareholder value.

Thanks to being a part of a global economy, a lot of the walls that were once in place on investing in foreign markets have now disappeared. That means if you have investment dollars to spend, you can really spend them anywhere in the world.

Now you may have known that you could put your money into any of the stock markets around the world before, but have you considered the other markets you can get into. Real estate investment trusts or REITs are also becoming available in more and more countries around the world.

Looking into this type of investing is taking a page from real estate pro Sam Zell who said, "I've always been called a professional opportunist, and in the future I'm open to anything. We've spent a lot of time offshore, looking at opportunities in real estate outside the United States"

Some of those opportunities may be REITs. REITs are investments where you can purchase shares of a property development or property management group. Instead of traditional real estate investments where you will have to fork out a lot of money for one piece of property, in this case you can purchase smaller shares of a property and still have some level of ownership without all of the responsibilities.

In the case of REITs someone else runs and manages things while you get a portion of the profits.

One of the newer markets to be coming in to REITs is the UK. While most people think the US and UK are pretty similar, they are just catching up with the REIT movement and starting to offer their own REIT options.

In the case of US REITs that portion of the profits has to be at least 90 percent of the profit that comes in from the properties. But as you consider looking beyond US shores for investment options you have to understand that there are different rules in different countries and the return may not be the same. You just need to do your research to know.

It's always smart to do a fair amount of research before investing your money. Begin by going to REITBuyer.com. This is a full service website that can help you through the process.

Start by taking advantage of their education and research areas. You need to know just what you are getting into before you purchase shares in a REIT. The more you research, the more you know.

Take a look at past performance of REITs that have been up and running for a while. In the case of the UK there are not too many to reference, but they will give you something to look at. There also will likely be articles and reports that you can look at concerning funds that are about to come into creation and get a feel for them.

Once you have a good feel for what you would like to purchase, you don’t have to go anywhere. REITBuyer.com also is a full service investing real estate broker and can help you widen your portfolio and then monitor your purchases online.