Category Archives: Investments

5 Questions, Capital Markets, Investments, 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 →

5 Questions, Capital Markets, Investments, Training

What is the Stock Market?

https://encrypted-tbn1.gstatic.com/images?q=tbn:ANd9GcRLYnPosKtyMl-jNn5oFxXblxCYPqQHjElxzQo4oXbmzaQL1s1WvwGenerally speaking the Stock Market refers to equities where actually stocks and derivatives are traded. In the U.S.A. we think the Stock Market is New York City. In fact there are major Stock Markets in Hong Kong, Hamburg, London, Paris, Canada, Japan and others that influence one another and impact the world Stock Market.

The New York Stock Exchange (NYSE) may have stocks listed that are listed on other major Stock Markets. A company headquartered in Amsterdam may be listed on multiple stock exchanges. Many foreign organized companies are listed on the NYSE. There is tremendous value for foreign companies to be listed in the USA. The exposure and knowledge of a foreign company has a face on the New York Stock Market. An example would be a China stock Baidu. These information and search technology company has grown in leaps and bounds since it was introduced on the New York Market. Sometimes all it takes is making a good impression to stock analysts and a good review by key people to give the foreign company a boost. Continue reading →

5 Questions, Capital Markets, Industrial, Investments, Market News, People

Commodities Are The Best Investment Today: Jim Rogers

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23 Nov, 2010: Korea tension: Commodities are the thing to invest in, says Jim Rogers

In an interview with ET Now, Jim Rogers, Chairman, Rogers Holding, talks about the correction in global markets besides giving his views on commodities and India. Excerpts:

http://economictimes.indiatimes.com/thumb.cms?msid=6976432&width=300&resizemode=4Q1: Global markets are correcting and everyone is saying it is because of Korea. Would you endorse that thought?

First of all, global markets should be correcting about this time because they have been pretty strong recently and there is always some reason to correct. This time, it looks like it might be Korea. Whenever you have threat of war, usually everything goes down at first, then you have to figure out what to invest in after the initial collapse. In my view, the thing to invest in is commodities because if there is going to be war, it is always good for commodities and if there is no war, then commodities will rally like everything else. Continue reading →

5 Questions, Contracts & Legal, Finance, Investments, MyOrbit Blogs, Real Estate

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.

http://images.businessweek.com/ss/07/05/0529_commercialrealestate/image/4_gherkinbuilding.jpg

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 →

Energy, Finance, Investments

Renewable Energy Mutual Funds

Renewable and Alternative Energy Mutual Funds Compared. http://www.warrenkarlenzig.com/2009/02/23/renewable-and-alternative-energy-mutual-funds-compared/

Personal Finance Helpers: Alternative Energy Mutual Funds:  Most of the companies that alternative energy mutual funds invest in are companies that create energy through renewable, green sources.
http://www.personal-finance-helpers.com/2009/09/alternative-energy-mutual-funds.html Continue reading →