July 13, 2011

Information about REITs

By Planet Wealth

pstrongREIT 101/strong/p
pA a title=REIT href=http://www.investorsmarts.com/investor-topics/REIT.html target=_selfREIT/a, or Real Estate Investment Trust is a liquid, dividend paying means of participating in the real estate market without really purchasing Real property. Investors can invest in commercial properties, mortgages, or a combination of both. Generally they invest in shopping malls, office complexes, apartments, warehouses, hotels, or even golf courses. Some Investors even specialize in specific types of properties, or geographical locations./p
pReal Estate Investment Trust securities pay dividends and offer possibilities of price appreciation experienced by the real estate owners. An Investor can buy a REIT just likean investor buys a stock, or mutual fund./p
pMost of the major mutual funds offer these funds to their shareholders. Because these mutual funds allow shareholders to reinvest dividends in additional fund shares, REITs are a excellent vehicle for investors looking for stable growth. Since they are dividend paying securities, the yield will rise as the share price declines just like a a title=Corporate Bond href=http://www.investorsmarts.com/investor-topics/Corporate-Bonds.html target=_selfCorporate Bond/a./p
pSo if interest rates continue to rise, they will produce a higher and higher income for investors who need income as the share prices fall. Additionally this form of investment offers instant liquidity unlike a direct investment in Real Estate properties, you will receive a check within days of the sale./p
pSo if you are nervous about the high prices in the real estate market, and potential negative effects of rising interest rates, but still want to invest, you can at least be assured of a quick exit if prices start to decline in the real estate market./p
pIf youd like to increase your investing knowledge, feel free to visit investorsmarts.com for a list of a title=Investment Topics href=http://www.investorsmarts.com/page4.html target=_selfinvestment topics/a./p

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