hr: Money

Real Estate Investment Trusts (REIT), are the Land equivalent of Mutual Funds.

Photo Credit: The County Clerk

Till now, most of our discussions on investment, have been held on stocks and bonds. While, my own strategy for this is fairly clear, I might want to cash in on the long term benefits of holding Real Estate. I want to do this, since I know, that in the long run, I am going to get good returns on it.

The problem though, and it’s a big one, is that I’m not a hands on management guy. I don’t want the hassle of paperwork, and finding a seller, negotiating the price, and all that sort of junk. Not only that, managing the property is a pain as well, since it needs to be constant, and requires some experience.

There’s good news for me! I can cash in the Real Estate market, in the same way that I can, with stocks. These are called Real Estate Investment Trusts (REIT). The advantages are that they are highly liquid, and can be traded just like stocks and bonds. Perfect for me! Especially in emerging markets, where real estate and land is hotter than a hot stove. It allows me to keep up with the latest gains in housing without the hassle.

You can get more information about where to buy them at the National Association of Real Estate Investment Trusts