Friday, September 21, 2007

REITs please.

"The Fed action was meant to address the crisis of confidence among lenders," said Robert Bach, senior vice president of research and client services at Grubb & Ellis (AMEX:GAV - News), a commercial real estate firm. "Maybe there will be a bit of a cooling, but fundamentals are strong. Vacancy rates are low. Rents are increasing. Tenant demand is strong and, perhaps most importantly, construction (or overbuilding) is not an issue."

http://biz.yahoo.com/ibd/070920/etf.html?.v=1

Call me dull, but I like REITs as a long term investment vehicle: particularly owning individual small and mid-cap REIT stocks in a tax sheltered account or purchased systematically through a Direct Purchase and Dividend Reinvestment Plan. REIT funds are good options too because they can offer greater diversity, however, most REIT companies are large enough to cover a significant portion of the country and most are involved in retail and commercial ventures.

Sure REITs are about as exciting as women's basketball, but its hard to argue with consistent dividend growth and their importance as a hedge during periods of inflation: especially considering that "REITs are financed primarily with long-term, fixed-rate debt," said Lou Taylor, a REIT analyst at Deutsche Bank.

Everyone in America wants to own real estate, but few can afford an investment property let alone their personal residence: here is your chance!

Go ahead, learn you somethin'! -- http://www.investinreits.com/learn/investguide.pdf

4 comments:

John said...

Why did this post behind mine? This is your virgin post it should be at the top damn it!

Michael said...

That's what I'm saying. It is making me question how you have this blog set up. Is there a small corner at the bottom of the page where you can put my posts?

John said...

I will make them all PDF documents so that no one will want to open them up.

Michael said...

you just hate Austrians.