Friday, July 27, 2007

Daily Real Estate News | July 27, 2007

5 Real Estate Investments to Cash In On

Some investors are becoming cautious of real estate because they have read too many frightening stories in the media, but Business Week magazine’s analysts continue to say that real estate is a key component of investment portfolios.

In this week’s magazine they identify five ways that investors can currently benefit from real estate.

1. International Real Estate Investment Trusts. U.S. REITs are going through a bad patch, says Jay Hutchins, president of Comprehensive Planning Associates in Lebanon, N.H. Instead, he advises clients to buy foreign REITs or mutual funds that are focused on global real estate.

2. Cash investments in commercial space. Office buildings, retail properties, and apartment houses provide stable cash flows, says Michael Kuziw, vice president of asset management at Lenox Advisors in New York City. But such investments require a portfolio of at least $1 million.

3. Invest an IRA in real estate for the long haul. Entrust Northeast, in Verona, N.J., which administers self-directed retirement accounts, allows for a wide range of investments, including first and second mortgages.

4. Consider buying a vacation homes outside of the U.S. For example, consider a country like Panama or Costa Rica where the political situation is stable and prices are affordable.

5. Fractional homeownership. This is gaining popularity and is within the reach of people with moderate incomes. For instance, Private Quarters Club in Fernandina Beach, Fla., and Lake Geneva, Wis., sell access to a three-bedroom luxury villa for 21 days a year for $79,000, plus an annual fee of $4,000.

Source: BusinessWeek Online, David Bogoslaw (07/26/07)

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