Comments on: Catch a Wild Ride with REIT http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Ted http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1241 Ted Fri, 19 Dec 2008 21:26:27 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1241 You would have to trade it in the ETF, VNQ, because the fund has a 1 year redemption fee of 1%. You would have to trade it in the ETF, VNQ, because the fund has a 1 year redemption fee of 1%.

]]> By: zanon http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1213 zanon Tue, 09 Dec 2008 22:38:48 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1213 Mr ToughMoneyLove Hah! The current situation is very unusual, usually, real estate goes (modestly) up. Also, note that the Government is doing all it can to get prices high again, including the new 4.5% mortgage. If you graduated in the late 90s, you could be saving up for a downpayment like crazy, only to see appreciation keep you from ever having enough! My point is that young people are intrinsically short realestate. to have a neutral position, they should have REITs Mr ToughMoneyLove

Hah! The current situation is very unusual, usually, real estate goes (modestly) up. Also, note that the Government is doing all it can to get prices high again, including the new 4.5% mortgage.

If you graduated in the late 90s, you could be saving up for a downpayment like crazy, only to see appreciation keep you from ever having enough!

My point is that young people are intrinsically short realestate. to have a neutral position, they should have REITs

]]> By: Mr. ToughMoneyLove http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1209 Mr. ToughMoneyLove Mon, 08 Dec 2008 18:35:45 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1209 Zanon - Another way of looking at it is that a young person has the time to accumulate cash for a downpayment while waiting for the real estate market to go down (like now). He/she can then move in with that cash to grab a bargain. I don't see how owning 100% REIT would assist in that strategy, if you assume that REIT valuations will also be down when the bargains are available. Zanon – Another way of looking at it is that a young person has the time to accumulate cash for a downpayment while waiting for the real estate market to go down (like now). He/she can then move in with that cash to grab a bargain. I don't see how owning 100% REIT would assist in that strategy, if you assume that REIT valuations will also be down when the bargains are available.

]]> By: zanon http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1208 zanon Mon, 08 Dec 2008 18:26:58 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1208 I also think REITs are key in a portfolio, but I actually think it should have 100% allocation to all young people just out of school. think about it this way -- you know you are going to buy a house someday, everyone needs a house, but for now you are saving money so you can afford it. You're negatively impacted if houses prices go up, and positively impacted if they go down. This means you are, de facto, short housing. Buying a REIT takes you to a neutral position. I also think REITs are key in a portfolio, but I actually think it should have 100% allocation to all young people just out of school.

think about it this way — you know you are going to buy a house someday, everyone needs a house, but for now you are saving money so you can afford it. You're negatively impacted if houses prices go up, and positively impacted if they go down. This means you are, de facto, short housing.

Buying a REIT takes you to a neutral position.

]]> By: TFB http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1207 TFB Mon, 08 Dec 2008 18:22:02 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1207 I agree. That's why I have a 5% allocation to REIT in <a href="http://thefinancebuff.com/2007/09/cascading-asset-allocation-method.html" rel="nofollow">my portfolio</a>. I agree. That's why I have a 5% allocation to REIT in my portfolio.

]]> By: Mr. ToughMoneyLove http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html/comment-page-1#comment-1206 Mr. ToughMoneyLove Mon, 08 Dec 2008 16:46:16 +0000 http://thefinancebuff.com/2008/12/is-reit-a-sector-or-a-separate-asset-class.html#comment-1206 Regardless of its present volatility, don't you agree that REIT is an essential component of any well-balanced long term investment plan? Regardless of its present volatility, don't you agree that REIT is an essential component of any well-balanced long term investment plan?

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