Claim Your Share of Real Estate Investment Trust (REIT) Profits From Around the World
Ever since so many private real estate companies converted themselves into Real Estate Investment Trusts and held IPOs in the mid-1990s, and with the publication of the first edition of Investing in REITs: Real Estate Investment Trusts by Ralph L. Block, U.S. investors have been discovering the high dividend yields possible through investing in commercial real estate through publicly owned companies.
REITs do not have to pay taxes on the income they distribute to unit holders -- and the government requires them to distribute at least 90%!
This means they pay out a lot more money than ordinary corporations (who have to pay corporate taxes).
REITs are cash cows.
What's not so well known is that countries all over the world have been following the lead of the United States and creating their own versions of Real Estate Investment Trusts.
Nearly 40 countries from Australia to Turkey have laws enabling some form of REITs, using the US as a model but ringing their own changes.
By investing in foreign REITs you can:
1. Have a stream of income that's <b>not dependent on the US dollar (or euro, or yen, or whatever your currency of residence is).
By investing in foreign REITs, you get income in a large variety of other currencies, which may be going up in value as the US dollar falls.
The two largest, oldest and most mature REIT countries in the world behind the US are Canada and Australia.
Which two countries in the world have recently seen the value of their currencies go up dramatically?
Canada and Australia.
But Canadians and Australians needs apartments, office buildings and shopping malls just like everyone else.
By buying shares of their REITs, you can get yourself some Canadian and Australian dollars.
Two other kinds of dollars are going up in value -- both from busy and booming Asian port cities -- Hong Kong and Singapore.
And both Hong Kong and Singapore have some great Real Estate Investment Trusts.
2. Have a stream of income from economic activity that may be up while your local area is down.
Most people's jobs are dependent upon their local economy. However, when business is slow in your area, it may be great in Paris, Dubai or Kuala Lumpur.
We also know that while the entire U.S. real estate market can be slow, real estate in other countries may still be booming.
3. Worldwide inflation protection
Well run REITs will do all they can to increase their net incomes, including raise rents to keep up with inflation -- wherever they are located.
Ever wanted to benefit from Japanese people paying rent for their apartments?
Or from businesses paying for offices in prestigious districts of Paris?
Or from tourists buying clothes in the trendy shops of Soho London?
Or from jet setters tanning themselves at Mediterranean luxury resorts?
Or from Australian wine vinyards?
Or even from Bulgarian farmers renting land to grow wheat on?
Or from drinkers having a pint in AB InBev's chain of European pubs?
From the warehouses and shipping docks of China?
Now you can!
In the last chapter you learn the investments that you can tell your broker to buy for you to profit from REITs around the world.
It's simple, easy and -- in this globalized world of international financial crises, a smart move to protect you and your family's wealth.
Genre: BUSINESS & ECONOMICS / Personal Finance / InvestingIs available through CreateSpace as well as KIndle.
However, the economies and dollars of Canada and Australia are looking good right now.
You could buy Canadian and Australian certificate of deposits, but the purchasing power of that interest income would go down in time thanks to inflation. And interest rates in those two countries are very low, as they are all around the world.
So why not get some Canadian and Australian dollar income flows that will go up with inflation, because they come from dynamic, innovative businesses that can raise rents?
Real Estate Investment Trusts
And why not also get some rental income from some of the most promising currencies of the developing countries -- such as Singapore and Hong Kong?
And remember, you don't know the future. Maybe Europe will get itself together, and you'll want a steady stream of euro income from REITs as well.
Whatever happens with Greek government bonds, people in Europe will continue to need apartments to live in and shops to buy food from.
Our Trip Around the World
This book takes you on a tour of those countries. I cover what I can of REITs in each one.
One thing I cannot do is evaluate those countries for their accounting practices and advise you on how to evaluate the REITs.
For one thing, although REITs are trusts in the US and many countries, in many they are other business entities. Accounting practices differ from country to country. I don't pretend to be an international legal and accounting expert.
In some countries the laws aren't being taken much advantage of -- yet. It's easy to forget after the law was passed in the US, it was three years before the first REIT was listed on the stock market.
And even then the industry remained immature -- little known and confused with fraudulent real estate partnerships -- for 30 more years.
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