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kaifastus
#1 Posted : Monday, November 05, 2012 9:58:57 AM
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Joined: 8/17/2011
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Location: humu humu
Are REITS returns going to be this huge? 100% returns in four years...LINK
http://www.businessdaily.../1/-/envljq/-/index.html
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hisah
#2 Posted : Monday, November 05, 2012 12:40:56 PM
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Joined: 8/4/2010
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http://www.50plus.com/mo...-invest-in-reits/25142/ - Some info about REITS which can be used as a pointer in this new instrument.

Quote:
Since you are a unitholder rather than a shareholder, you are potentially jointly and severally liable with all other unitholders (plus the trust itself) in the case of insolvency.

Instead of limited liability, you are relying on the REIT management to have property, casualty, and liability insurance, prudent lending policies, and other safeguards in place.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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kaifastus
#3 Posted : Monday, November 05, 2012 4:16:10 PM
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Joined: 8/17/2011
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Location: humu humu
hisah wrote:
http://www.50plus.com/money/when-to-invest-in-reits/25142/ - Some info about REITS which can be used as a pointer in this new instrument.

Quote:
Since you are a unitholder rather than a shareholder, you are potentially jointly and severally liable with all other unitholders (plus the trust itself) in the case of insolvency.

Instead of limited liability, you are relying on the REIT management to have property, casualty, and liability insurance, prudent lending policies, and other safeguards in place.


Thanks. i reckon the unit value will be high,perhaps in the neighborhood of 500,000..there's room for high gains as well as devastating losses!
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hisah
#4 Posted : Monday, November 05, 2012 5:13:26 PM
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Joined: 8/4/2010
Posts: 8,977
REITS with rental property in the lower bracket will provided the most steady return. The room to hike rents down there is higher than the upper class market.

I expect REITS that deal with build and sell to be the most risky, but with the highest return. Though these ones might price the unit beyond wanjikus reach due to the high capital risk ... e.g. those that will venture into condos or marinas...
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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S.Mutaga III
#5 Posted : Monday, November 05, 2012 8:46:16 PM
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Joined: 3/26/2012
Posts: 830
Am I the only one who sees this as bad news for HFCK and S&L? These large investment companies will definately compete head-on with them. They may also have a negative effect on banks as investors willing to venture into real estate will buy units of these reits...the management of reits will obviously source for cheaper funds abroad considering high interest rates. Banks whose loan book is mainly supported by real estate investments may be worst hit...but thats my two cents.
A successful man is not he who gets the best, it is he who makes the best from what he gets.
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VituVingiSana
#6 Posted : Tuesday, November 06, 2012 1:12:05 AM
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Joined: 1/3/2007
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Location: Nairobi
S.Mutaga III wrote:
Am I the only one who sees this as bad news for HFCK and S&L? These large investment companies will definately compete head-on with them. They may also have a negative effect on banks as investors willing to venture into real estate will buy units of these reits...the management of reits will obviously source for cheaper funds abroad considering high interest rates. Banks whose loan book is mainly supported by real estate investments may be worst hit...but thats my two cents.
The market is large enough for all the players. HFCK will adapt to financing REITS. Borrowing in forex entails currency risks.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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guru267
#7 Posted : Tuesday, November 06, 2012 1:32:30 AM
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Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
S.Mutaga III wrote:
Am I the only one who sees this as bad news for HFCK and S&L? These large investment companies will definately compete head-on with them. They may also have a negative effect on banks as investors willing to venture into real estate will buy units of these reits...


1. Local investors who were borrowing to invest in real estate directly will still have to borrow to invest in REITS meaning the bank still lends in the end...

2. REITS do not compete/clash with mortgage businesses in any way because one cannot live in a REIT.. The property is still eventually sold to individuals through bank mortgages!

3. These REIT companies will however directly compete with HFCK which has ventured into property development! But there is more than enough room in this sector!
Mark 12:29
Deuteronomy 4:16
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symbols
#8 Posted : Thursday, March 21, 2013 1:42:07 PM
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Joined: 3/19/2013
Posts: 2,552
The birth of a bubble!
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