Real Estate Investing For Retirement
Many people today are employed by themselves or small companies that just don’t have any sort of retirement plan. If you are one of these people, what have you done to make sure you are able to take care of yourself in your older years? Unfortunately for many people the answer is nothing. They don’t know where to begin or they have seen someone else lose everything in the stock market and are in fear of that type of investment.
While you may think that all stocks, bonds, mutual funds and everything connected to the market is evil these days, there are some investing avenues that will be there for you and can even help you see a healthy profit on your investments.
In this case we are talking REITs. A REIT is a real estate investment trust. This is essentially a holding company that uses the money from shareholders to purchase or manage real estate interests. Whether it's mortgage brokering or store and apartment complex purchasing, the money that comes in as interest payment or profits from the real estate holdings is then returned to the investors in the form of a dividend.
Traditionally, REITs pull in a 6-10% dividend annually. Some investors turn away from this type of return saying it's not enough to warrant putting their money in these accounts, but if you are working towards retirement, you need to look at this differently.
Unlike stocks, your REITs may not see massive gains in a year, although sometimes they do. Also unlike your stocks, your REIT investment is not going to disappear. While REITs can lose value, since they are property holdings, and property always has some value, they will not disappear completely taking your money with them.
Meanwhile, a return of 6-10% a year on a regular amount of money being put into a REIT will help you put aside a healthy little nest egg. It is a better savings option than you would get by putting your money in a bank or other secured interest possibility, while still being a pretty stable and steady investment that is not likely to go away.
If you keep putting your dividends right back into the investments, you may be surprised at just how fast your money will grow. While it is a long-term investment, in time you will be pleased with the returns.
Once you're ready to learn more about REITs it's time to do your research. This begins on REITBuyer.com. REITBuyer.com is a website that specializes in REITs. They are not only an information source, but also an investing real estate broker. That means they are the pros in this arena and can not only help you learn more about these types of investments, but also offer you the tools and research you need to make wise purchases and even let you make those purchases online.
There is no time like the present to begin your retirement fund. REITs are wise long-term investments that can help your fund see the money it needs when you get to retirement age.
Sunday, March 8, 2009
Wednesday, February 25, 2009
REIT Investments - Take Lessons from the Big Dogs
Real Estate – Going To The Head of the Investing Pack
In the world of investing there are two kinds of people, those who make money and see a profit and those that don't. Everyone wants to be a part of the first group, but not everyone knows how to do it.
If you are truly to do well in investing, you have to take a few lessons from the big dogs. After all, they got to where they are through years of hard work and investing. They must have done something right.
The first thing you need to know is where to invest your money. Many of those money moguls will tell you their fortunes were made in real estate.
Look at Donald Trump! His whole career was made on the right real estate moves at the right time. Another thing to consider is that real estate is an asset, instead of a more fluid commodity that could disappear overnight. What if the market had a tough time? Warren Buffet once said, "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." Can you say that about your other holdings? If you have real estate in your investment portfolio, you probably could, as real estate is something that will still have value.
For many people who are accustomed to the more traditional types of investments, they are not really sure where to start when it comes to investing in real estate. Do you have to buy a piece of property? A house? An apartment complex? The answer is no. You don’t have to do any of those things. Purchasing property outright, while still a nice investment, is a much more detailed investment than most people want to try. You want to be a part of a fund or have something as liquid as a stock, not be stuck in a situation where you are forced to deal with all the contracts and deeds of property as well as the maintenance of it.
This is why you should be looking at REITs. REITs are Real Estate Investment Trusts. Essentially these are the mutual funds of real estate. When you purchase shares in REITs you are putting money into the pot for the real estate management group or real estate development group to build or purchase real estate with and then manage it and keep it operational.
How you profit from this system is when through the money the management group makes annually. From rent in residential properties to leases of business properties, 90 percent of the profits from REIT investments must go back to the shareholders in the form of dividends each year.
Beginning investing in REITs is simple; you just need to know where to look. A website like REITBuyer.com is a great place as they not only have all of the education and research you need to find out what REITs are out there and see how they are performing, but they also are a full service investing real estate broker so you can purchase your REITs through them as well.
In the world of investing there are two kinds of people, those who make money and see a profit and those that don't. Everyone wants to be a part of the first group, but not everyone knows how to do it.
If you are truly to do well in investing, you have to take a few lessons from the big dogs. After all, they got to where they are through years of hard work and investing. They must have done something right.
The first thing you need to know is where to invest your money. Many of those money moguls will tell you their fortunes were made in real estate.
Look at Donald Trump! His whole career was made on the right real estate moves at the right time. Another thing to consider is that real estate is an asset, instead of a more fluid commodity that could disappear overnight. What if the market had a tough time? Warren Buffet once said, "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." Can you say that about your other holdings? If you have real estate in your investment portfolio, you probably could, as real estate is something that will still have value.
For many people who are accustomed to the more traditional types of investments, they are not really sure where to start when it comes to investing in real estate. Do you have to buy a piece of property? A house? An apartment complex? The answer is no. You don’t have to do any of those things. Purchasing property outright, while still a nice investment, is a much more detailed investment than most people want to try. You want to be a part of a fund or have something as liquid as a stock, not be stuck in a situation where you are forced to deal with all the contracts and deeds of property as well as the maintenance of it.
This is why you should be looking at REITs. REITs are Real Estate Investment Trusts. Essentially these are the mutual funds of real estate. When you purchase shares in REITs you are putting money into the pot for the real estate management group or real estate development group to build or purchase real estate with and then manage it and keep it operational.
How you profit from this system is when through the money the management group makes annually. From rent in residential properties to leases of business properties, 90 percent of the profits from REIT investments must go back to the shareholders in the form of dividends each year.
Beginning investing in REITs is simple; you just need to know where to look. A website like REITBuyer.com is a great place as they not only have all of the education and research you need to find out what REITs are out there and see how they are performing, but they also are a full service investing real estate broker so you can purchase your REITs through them as well.
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