“The basic assumption and belief, which is still untested, is they won’t be super highly correlated with stocks and bonds in other countries,” said Joseph Gyourko, a professor at the University of Pennsylvania’s Wharton School of Business who specializes in real estate. “It’s going to be different than owning equities on the German stock exchange.” In the United States, there were 104 global real estate mutual funds by the 2012, up from 50 at the end of 2007, according to S&P Capital IQ, the research arm of Standard & Poor’s. About 5.5 percent of 401(k) retirement plans now offer a global real estate fund in their lineup, a 30 percent increase since 2007, according to Brightscope, a San Diego based firm that rates company retirement plans. Pension funds, meanwhile, plan to raise the portion of their real estate allocation devoted to foreign investments to 6.2 percent on average this year, up from 3.5 percent in 2012, according to a yearly survey of 80 such funds by the publication Institutional Real Estate Inc.
For the original version including any supplementary images or video, visit http://www.reuters.com/article/2013/04/26/us-globalrealestate-investment-idUSBRE93P05120130426
Real estate investing requires a new way of thinking about your money
People are intimidated by real estate and other direct investing strategies. They think theyre too risky. Yet theyll run off and sink their entire lifes savings into a blue chip company not knowing a single thing about the organization because large American companies cant fail, right? There are good solid real estate investments all around you, and there are ways you can hedge your bets to protect your investment.
For the original version including any supplementary images or video, visit http://www.washingtonpost.com/blogs/where-we-live/post/real-estate-investing-requires-a-new-way-of-thinking-about-your-money/2013/03/26/d0c6f0c0-956f-11e2-ae32-9ef60436f5c1_blog.html