Sunday, March 22, 2009

Investing in Asian Real Estate " Housing Communities" REITs

When it comes to real estate investing, many people look around the United States for opportunities to invest in the "housing communities": the next apartment or condominium, or commercial real estate projects. Many of them don't want to buy property outright, but would prefer to purchase a share in a property project. This can be done through a REIT or real estate investment trust. A REIT is much like a mutual fund for real estate investing. A number of shareholders put funds into the system and a real estate management or real estate development company uses that money to build and operate real estate ventures.

It could be an apartment complex or shopping complex that is being run. As the property makes money through rent and leases, the shareholders get a portion of that money back through dividends. By law, REITs must give at least 90 percent of their profit back to the shareholders. That is potential for a great return on an investment.

Yet, watching the current housing and real estate market in the US has many wondering if that is where they want to invest. Well, if you don't, look elsewhere. There is a wide world out there of real estate opportunities that will let you fund projects not only in this country, but also around the world.

One of the more recent markets welcoming REITs is Asia. While the United States got into the REIT arena in the 1960s, Asia is just entering into this world, which means there are nearly endless opportunities available for those who want to invest in Asian real estate options.

Since the market for REITs is relatively new there, there is a wide variety of investing options available. Depending on which market you are interested in, you can find a REIT in industrial, residential or commercial real estate holdings.

When entering into Asian REITs there are a few things to keep in mind. While the US regulations on REITs state that at least 90 percent of the money that is made in profit has to be returned to the shareholders, this is not always the case in other countries. Therefore you need to do your research before you make a purchase.

So, how do you get started investing in these overseas opportunities? As with any investment, you need to do your homework first. Thankfully, there are places around that will make this easier for you.

Begin by going to a website such as This is where you will be able to get a lot of the research you need to find out which REITs are strong and what new opportunities are about to come around that you may be able to get in on.

Next, you can also use to make the purchase of your REITs, as they are a complete investing real estate broker.

Once you have made the purchase, you can also continue to monitor your REIT through with the tools they offer to help investors keep on the top of their game and their portfolio.

"Housing Communities" REITS - Now is the time for Real Estate Investment Trusts

If you have been watching all the shifts in the investing markets, you may be a little worried about putting your money into any of them right now. Things have been falling and falling, how do you know where it will be safe to put your cash?

Perhaps it's time to look at some of the other investing options out there like real estate. I am not talking about running around and buying up any extra lots of property you happen to see around in "housing communities. That comes with a lot of responsibilities and major outlay up front. Not only do you have to have the money to purchase the whole property, but you also have to be able to take care of it and maintain and manage it after the fact. This is a lot to ask for in an investment.

Instead, you may want to look into another type of real estate investing, real estate investment trusts. Real estate investment trusts or REITs are funds where you purchase shares of the investment and a real estate management group of real estate development group uses that money to purchase, build or maintain property ventures. You essentially fund a portion of a property acquisition and management group.

In return for your investment, you will be paid a portion of any profit that the company makes, much like a stock dividend.

While you may be wondering how wise it is to consider real estate in today's tough market, this is exactly why it may be a good time to look at a little more investing. Here's why. Sure, there has been a tough time for the markets. Lending has dropped, defaults on properties are on the rise. We're in tough credit times.

But now let's look at the positive side of things. Most think the slide has slowed and will soon be stopping. Add this to the fact that those capital markets that REITs use to get their funding for expansion and other purchases are low and that means the chances for REITs to get the capital they want to expand has dropped, for now. While you may think this is a bad sign, the truth is this is a time when the value of REITs is lower, meaning you can get in at a lower price. As things settle and go back to normal, your profits will go up and you will see an even greater return on your investment.

This is the time to log onto a website like and find out what REITs are out there, what they are selling for and get yourself in on this low tide so you can enjoy the ride when the financial wave picks up again.

With the other option being putting all of your money away and seeing no growth, what would you prefer?

Money Making Guru Robert G. Allen may have said it best saying, "How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."