Wednesday, July 22, 2009
Many real estate investment experts advise it's time to buy. With price falling, it is a once-in-a-generation opportunity to load up on possessions, they say.
How much of an investment portfolio must be loyal to real estate? David Swensen, who manages Yale University's donation, says 20 percent is a stylish number.
One option is real estate investment trusts (REITs), which, in spite of the fact that they slash dividends to preserve cash, are still paying standard yields of 7.3 percent. That's twofold the yield on Treasury's.
Should a home be component of the equation? Michael Kirby, originator of Green Street Advisors, says no.
"You should possess a house to provide protection," says Kirby. "In a way, it is not an investment, and it is not piece of your investment portfolio. It's actually just a living expense. By owning a house you are prepaying rental fee."
How much of an investment portfolio must be loyal to real estate? David Swensen, who manages Yale University's donation, says 20 percent is a stylish number.
One option is real estate investment trusts (REITs), which, in spite of the fact that they slash dividends to preserve cash, are still paying standard yields of 7.3 percent. That's twofold the yield on Treasury's.
Should a home be component of the equation? Michael Kirby, originator of Green Street Advisors, says no.
"You should possess a house to provide protection," says Kirby. "In a way, it is not an investment, and it is not piece of your investment portfolio. It's actually just a living expense. By owning a house you are prepaying rental fee."



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