Wednesday, August 23, 2006

Professional Advice - Where Do I Invest In Real Estate?

The current conditions in the USA have created a dilemma for those of us north of the border. Where do I invest my money in real estate, especially if the market is uncertain. By investing in rental properties in your own area you leave yourself open to local market fluctuations, which also will effect your primary residence. You could invest in a community removed from the fluctuations that would effect your primary residence, but it is hard to be a efficient landlord if your property is many hours away. Perhaps the answer is a real estate fund.

Real Estate funds will charge a fee, but because they are much larger, money wise, their is more security. And you don't have middle of the night calls about a leaking hot water tank.

Real Estate Investment Trusts (REIT's) also have a great rate of return, but can be more volatile.

Returns of REIT's can be as high as 30%, and returns on Real Estate fund are a more conservative 15%.

Experts say diversity is the KEY.

The Globe and Mail has the full article.

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