[Pepini]

A friend of mine who works in the marketing department of a portuguese construsction company in Brasil is telling me houses are sold by tweeters. The boom is brutal and probably there will be the crash, but i´m guessing latter than sooner.
http://www.fundoimobiliario.com.br/rent-2010.htm
I´m thinking on investing on Real Estate Investment Trusts over there. Anyone has the scoop on this?

[kimleebj]

(01-27-2011 09:14 PM)Pepini Wrote:  

Brasil ... Real Estate Investment Trusts ... . Anyone has the scoop on this?

U.S., REIT's are typically commercial real estate like strip malls. They are quite different from residential real estate - more highly correlated with the stock market than with real estate indices.

Residential real estate is illiquid because you must occupy the property to get the benefits. This makes prices sticky and predictable. It offers opportunities if you are flexible enough to move to a booming area or leave a shaky one. But REIT's are quite liquid, so it is hard to believe you could get a good deal that others don't exploit. Maybe REIT's could provide a good hedge against your Brazilian retirement costs, and I would prefer that argument to the argument that you are smarter than everyone in Brazil.

[manilaguy]

Not sure about REITs but I have an condominium in Manila which I got in on after the developers miscalculated the demand coming from Filipino-Americans, partly due to the effects of recession.

[Stuart01]

Real estate investment is the best kind of investment to make. One can earn high profits if the investment is in a planned manner. These days the foreclosure is also very high, the prices of houses are available at throw away prices. A wise investor will definitely invest in real estate business now.