Who’s Investing in Real Estate?
In the world of investing we often hear talk about being a contrarian, not following the crowd, buying low and selling high. There is currently a subprime mortgage debacle and a housing downturn. So, with real estate as out of favor as it is right now, I’d like to know who’s investing in it.
Recently REITs, on average, have been selling for about 20 percent less than their net asset values. In her article, It’s REIT Time, And You Can Buy Low, Kathy Kristof suggests that at these discounted prices, it might be a good time to look at real estate investment trusts.
Have you ever heard the term “trying to catch a falling knife?”
It’s still falling….
I’m actually thinking about moving 10% of my 403b money into a REIT…
I think I’ll do a lot more research, but if the object is to “buy low”.. then I think it might be the time (or near it) to pull the old trigger…
NCN
BTW.. I’ve cleaned up the look of my blogroll… and your site is under the pf blogs section… (moved hosting, so widgets and site should be more reliable…)
NCN
I think it may be a good idea with a little research. Reits come in all flavors. At this time I would be looking into Reits that invest in commercial property and upscale apartments, possibly even a storage Reit. The dividends are very good on most companies and help to cushion the blow if they do indeed fall further before going back up. Interest rates are at least stable and could possibly go lower which is a big plus for Reits, as they can refinance or re-negotiate credit lines. That being said, I would not commit more than 10% of my portfolio at this time.