irish reits

[galway_blow_in]

And this kind of nonsense is exactly why Irish households lost more in personal wealth than most other countries...

So because some Irish investors lost money on property, you completely write it off forever as an investment?

 

[Gordon Gekko]

Irish investors in property were wiped out in the following scenarios:

- Good assets but too much borrowings

- Bad assets

- Bad assets and too much borrowings

Someone with good assets and a prudent level of borrowing should always be fine.

The REITs have rules around borrowing and they are diversified, albeit within that asset class.

 

[galway_blow_in]

Irish investors in property were wiped out in the following scenarios:

- Good assets but too much borrowings

- Bad assets

- Bad assets and too much borrowings

Someone with good assets and a prudent level of borrowing should always be fine.

The REITs have rules around borrowing and they are diversified, albeit within that asset class.

Heard it said that the dividend yield is no better than on a diversified equity fund and as such is not a runner due to sector concentration ?

Many of the American Big REITs appear to have 5% yields

 

[Jim2007]

So because some Irish investors lost money on property, you completely write it off forever as an investment?

Except it was not some people it was most people. And the was majority lost not because of the recession nor the banking crisis but because they ignored the basic rules. And the exact same thing will happen again, the build up is already under way.

 

[galway_blow_in]

Except it was not some people it was most people. And the was majority lost not because of the recession nor the banking crisis but because they ignored the basic rules. And the exact same thing will happen again, the build up is already under way.

Sorry, over what time period are you referring to, surely most people did not loose if you go back twenty years, I ask because with respect of equities, the received wisdom is you must take a long term view.

 

[AlbacoreA]

Are we talking about property in general or still talking about reits

 

[joe sod]

Are we talking about property in general or still talking about reits

Well seen as reits are essentially an investment in property, we are discussing both really, like most discussions in veers into other areas also. I brought up the issue of the bad mouthing of reits which is happening now, a peculiarly Irish phenomenon I think.

 

[AlbacoreA]

Two types of complaints.

1 The rules favour them.
2 Do they give a good ROI.

 

[DeeKie]

Is it a good idea to consider these now as a fresh investor? Is there a minimum investment amount to make them work?

 

[Jim2007]

Two types of complaints.

1 The rules favour them.
2 Do they give a good ROI.

You missed one... not a single one of them are suitable for including in the portfolio of most Irish investors.

 

[galway_blow_in]

You missed one... not a single one of them are suitable for including in the portfolio of most Irish investors.

Why not?

They hold prime location assets.

Is it because they don't pass muster when it comes to the orthodox investors handbook ?