England 19/03/2013
In today’s fast changing financial environment liquidity is seen as almost as important as return rates by many investors
For investors who are looking for assets that are easy to buy and sell a Real Estate Investment Trust REIT is a very attractive proposition. They can be bought in small quantities, and can be sold on quickly. Shares in REITs can be bought through a broker in the same way as regular shares can. Many investors look at this financial asset as if they are shares, however, in reality they are two distinctly different financial products.
REITs can be sold on quickly, so an investor who needs cash quickly can liquidate this investment extremely quickly. In the current economic climate, this is very important, in particular for small investors. When someone loses their job, they may want to liquidate an asset to provide them with the cash they need to pay their day-to-day bills. People also want to feel in control of their investments and the ability to buy and sell them quickly is definitely a part of this.
The chance to diversify is also attracting investors to REITs
However, this is not the only thing that is attracting investors to Real Estate Investment Trusts. Most investors are trying to diversify their portfolios to avoid overexposure to one type of investment product in today’s turbulent market. A lot of people want to invest in property, but do not have sufficient cash to buy a property outright. REITs give them the chance to invest in commercial property despite having a relatively small capital fund.
Many are investing with firms like McKay Securities who have been offering Real Estate Investment Trusts from the start. They are attracted to them because of their high-end commercial property portfolio based mainly in the south east, which is seen by many investors as the most stable part of the UK, economically speaking. This faith in this type of commercial property portfolio has proven to be well placed. Even in today’s tough economic conditions, returns from their REITs have remained good and they look set to continue to provide investors with a good rate of return.