stocksguru wrote:Buyer be aware, there is a proposal to have 2 types of REITS that is rental and development.
The rental REITS are timely especially with the prevailing high interest rates and shrinking middle class making rental sustainable.
For the development REIT's I tell you be aware as this could be a pyramid scheme in the making. Even in the developed markets this type of REITs are only available to institutional and qualified investors and like hedge funds are unregulated.
A qualified investor in the US is someone with a net worth, not debt worth, of 1 Million Dollars or above therefore making them unsuited for offer to retail aka KBF investors like you and I.
There also needs to be a strong regulation and monitoring of the equity to debt ratios, I would propose a zero "0" percentage until such a time as our real estate markets are more mature.
To me this is a great opportunity that is presenting itself and to me a solution for those "investment groups" that have been using land purchase as a means of balancing their portfolios.
Kaa Chonjo
We have a long way to go, first off REITs does not mean flight away from the stock market. If anything it means buying property but only in the form of a stock, a REIT is in essence investing in the real estate market through the stock market. So insinuations of leaving the stock market dont make sense.
Yes there are 2 types of REITs but the BD article clearly said only the traditional ones will be sold to the public!! Anyways time will tell.