Category Archives: Real Estate

What is a REIT?

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRYBAHkwnarbu9LPlb2LxrGMWeav02EJTXNXcGneJmmLBFq_BZKREIT is the acronym for Real Estate Investment Trust. According to the National Institute of Real Estate Investment Trusts 190 Re Its are currently registered with the SEC and trade on one or more of the New York Stock Exchanges. There are over 900 REITS that are privately held companies.

The advantage to investors in the REIT is the source of income it provides. Specifically, due to the structure of the REIT it does not accrue corporate tax, instead it returns all of the taxable income to investors. The investor receives a 1099 form for tax purposes and it is therefore taxed like additional income.

The REIT can be designed to fit almost any scenario available in the real property world. It can play the upside and the downside and provide hybrid type coverage. Primarily the REIT is composed of commercial property including shopping malls, apartment complexes and income producing property. It also is packaged with residential real estate of a particular type. Continue reading

Real Estate Basics

https://encrypted-tbn2.gstatic.com/images?q=tbn:ANd9GcQDyPx3TOKhs-f2Y6-Cye0Uv6rRV6I9rEH-qus7RCpereKL-tOmoAThe term real estate is used to refer to any property, which is permanently attached to land such as buildings and houses. Most people refer to it as real property but there are situations wherein the term real estate is used for the land and the building together while real property refers to the ownership rights of the land itself. On the other hand, the word real is used to categorize these properties as things as opposed to people. Records show that the idea of real estate can be traced as far back as 1666. With the idea of personal property becoming more widespread, real estate has become a major area of business in the United States. In fact, economists claim that the reason for the recent economic slump is due to the lower revenue generated by this industry. Most people land and buildings as an investment. Our investment experience shows land in the ultimate investment, while buildings tend to depreciate after 10-20 years. Continue reading

Florida Voters Hoping For Solutions from Republicans!

Wall Street Journals’s Arian Campo-Flores reports on housing crisis and how it has hit Florida especially hard. He reports Florida’s residents are looking to presidential candidates for specific remedies. Florida, California, and Nevada (=Las Vegas) have been the worst impacted housing markets in the USA. In other words, the bubble and greed was the maximum in these states. So the voters in these states are clearly going to use their vote to get their woes addressed. In my view, Florida’s voters should not expect any of the Republican candidates to solve their problems housing and employment problems.

Investment Opportunities in UK for 2011-2012

Hello Folks, since Jan 2011, we have been researching a few good Investment Opportunities in UK that can be used by investors and entrepreurs in our network – anyone based in the UK or abroad – location does not matter in such investments.

Our focus has been to look at businesses that are net exporters to the world, and have solid assets that will appreciate with time, even if the current economic weakness drags on for 1-2 years more. For some reason, many people in the UK automatically associate investment opportunities with property investments in the UK, but it does not have be like that because by investing in UK property, you are missing out on the growth happening in emerging economies like Brazil, Russia, India and China.

Many UK companies have business interests in these growth economies, and you must profit from them. Given the QE2 and overall positive liquidity in the global capital system, we believe natural resources are present a strong investment opportunity for anyone with 4 to 5 year timeframe.

Within the UK, Internet services, financial services, renewable energy, and pharma/biotech industries also present great investment opportunties that could give 25-50% return on investment in 2011-2012 timeframe. If you are interested to know more, please contact us .

Notes for Commercial Real Estate Investments

Commercial real estate is defined as property that is used for the purpose of commerce. For example, an office building, a warehouse, retail store, shopping center or an apartment building with five or more units.

Today in 2010, due to the global recession since 2008, there is a much higher supply of commercial real estate than its demand, and hence the prices are attractive and can be negotiated hard by interested buyers.

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We expect that commercial real estate prices may correct by 10-20% in 2011 depending on the country and city. In general one can’t go wrong with buying commercial real estate (office space, rather than shopping malls) in big cities if the time frame is 5-10 years.

The risk-reward is more in commercial property than in residential property. Commercial real estate returns can give attractive over 5-10 year period; much better than you would get from residential real estate of the same proportion.

Location is very important in commercial real estate. Our experience has been that “it is better in general” to have a small space at a busy city-center/downtown place, than to a big space at a suburb.

London and New York are two cities that will deliver good returns despite recession if you can invest for 5-10 years. Irrespective of where you are in the world, see if you can invest in commercial property in high growth cities like Mumbai, New Delhi, Hong Kong, Shanghai, etc. These cities can deliver 5x returns in 10 years. Continue reading