Investing In Reit | South Jersey Real Estate Agent

Investing in Reit permits investors to receive a steady earnings from their capital.

But Reit?s yield reduced with time, from 7% in 2000 down to 5,30% in 2011.

Why such a trend?

Well often due to the geographical placement of the assets, generally located around Paris, where the prices went up, and that the yield went down.

Real estate bubble in France failed to burst in France yet, and costs are still near their historic top. In the mean time, hire price failed to go up as much.

So as to raise the yield again, asset managers need to invest in different assets and different locations.

As an example Scpi could invest in parking lots, or in medical facilities, or perhaps in foreign states.

But investors should be conscious of the fact that higher yields imply higher risk as well.

Investing near Paris is reasonably safe, because Paris is a huge european town, and will probably be always engaging.

If Scpi invest in smaller towns or nations, they may face a larger risk.If real estate market starts falling down, Paris market will most likely resist better than province cities.

Still with a heavy rate of inflation, investors need to get higher return on their investment.

Central banking organizations are printing so much money since 2008 crisis, that inflation rates should remain high in the subsequent couple of years.

European Central Bank and Fed Reserve Bank appear to be content to print as much money as they can to save banks and sustain cheap expansion.

If it is lucrative for bankers and monetary industry, it has major results on the population and individual backers, whose purchasing power decreases with the loss of cost of EU Dollar and dollar.

Scpi are a safe way to guard their capital, since they?re debt free and supply an enticing yield.

Let?s just hope they will resist a major financial crisis.

You will find more information about Reit and Scpi on our blog : lesscpi.com

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Source: http://southjerseyrealestateagent.com/?p=10240

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