Are you looking for a really useful stock market trading tip? Keep reading because in this article I am going to give you some great stock market advice.
Ever heard the expression, "they're not building anymore land" The point of this expression is - if you want to make money own property.
Sadly owning property is beyond the reach of most people, luckily there is an alternative.
This alternative is R.
E.
I.
T's (real estate investment trust).
So what is a R.
E.
I.
T? Basically it's a trust company which buys, develops, manages and sell's property.
By buying stock in a R.
E.
I.
T you are buying a portion of a pool of real estate.
Buying shares in a R.
E.
I.
T has many advantages some of them are · If you buy shares in a R.
E.
I.
T you are essentially buying pieces of property i.
e.
physical assets with long expected life spans and income potential through rent.
· R.
E.
I.
T 's allow the man on the street who does not have vast amounts of capital to invest in property.
· Because the funds of these trusts are pooled together there is a large amount of diversification going on When picking a R.
E.
I.
T you should do your homework, here are a few tips to help you.
· Good management - when picking a R.
E.
I.
T to invest in you should know the management team and their track record.
· Diversification - it is important that the R.
E.
I.
T you invest in is properly diversified, owning too much of one kind of real estate can cause big problems.
This article should give you a good overview of real estate investment trusts, if you found this stock market trading tip useful please visit my website by following the links below.