iNVEZZ on the Ins and Outs of Real Estate Funds

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Investors’ portal iNVEZZ has recently released an analysis looking into the real estate investment fund market as an alternative to a direct investment in property. Beginning with the emergence and history of real estate investment trusts (REITs), going through the relevant trends across the globe and ending with a look at the 2013 outlook, the author of the editorial, Xavier Basil, provides a comprehensive overview of this increasingly popular property investment option.

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Apart from a straightforward REIT venture, property investors may also consider a stake not in a specific REIT but in a fund which invests in a REIT index, or in an exchange-traded fund (ETF) which specialises in REIT investment.

Investors’ portal iNVEZZ has recently published an analysis entitled “Real Estate Funds (REITs) – The Alternative To Direct Investment In Property,” covering the REIT market not just in the UK, but also “across America and the globe.” The author of the editorial, Xavier Basil, looks at the ins and outs of REIT investments, whose main aim, as he outlines, is “to provide a means for exposure to the real estate sector for mainstream investors who either cannot or do not want to make the size of financial commitment required to acquire a particular type of real estate [asset]”.

Basil begins his recently-published analysis by providing readers with a glance at “the birth of the real estate investment fund.” The author reveals that while this property investment instrument started life in the United States over 50 years ago, REITs are now established investment options in the UK real estate sector and in a number of other countries. There is another important development in the REIT market which happened during this half-century history. As Basil writes, “whereas real estate funds in their early days focused on mainstream commercial property – offices and warehouses – today there’s a wide variety of REIT-owned real estate affording investor choice across a range of economic sectors, from timber yards to medical and dental clinics, shopping malls to self-storage units, family homes to forests.”

After providing the background info, the author of the iNVEZZ editorial provides the portal’s readers with an overview of the essential criteria for REIT status. He writes: “There is no international standard for REIT status but there are certain essential criteria which in all countries distinguish REITs from ordinary companies.” Basil further reveals some details in regards to REIT status in the US and UK, compares the similarities and distinguish the main differences, while also taking a look at some other countries’ real estate investment fund criteria.

Moving on, Basil continues his recently-released analysis with a note in regards to the different options investors have when it comes to real estate funds. Apart from a straightforward REIT venture, property investors may also consider a stake not in a specific REIT but in a fund which invests in a REIT index, or in an exchange-traded fund (ETF) which specialises in REIT investment. And when it comes to ETFs, the recently-published iNVEZZ analysis also explains the REIT correlation with other exchange-traded investment products. Basil also takes an in-depth look at the means of valuing this type of investment, as well as other points for consideration which give an initial direction to anyone interested in entering the REIT market.

At the end of the newly-released iNVEZZ editorial, Basil includes a helpful “REITs – Outlook for 2013” section, where he outlines that the real estate investment fund market is on course for “another strong year for real estate funds going into 2013.”

To learn more about iNVEZZ, join, contribute your own professional or amateur expertise on the investment areas of your interest or engage with other investors or experts, please visit http://www.iNVEZZ.com.

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