Simon Paul Buxton - Investment in Real Estate

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Investment in Real estate
Simon Paul Buxton
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Objectives

• 1. What is real estate
• 2. Investment in real estate
• 3. Real estate cycle
• 4. REIT
• 5. Present scenario
• 6. Case study

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Introduction

• There are many different places you can stick
  your money other than under your pillow,
  including stocks, bonds, savings, mutual funds,
  CD, currencies, commodities, and of course, real
  estate. There are positive and negative aspects
  of each investment option.

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Definition

• Real estate that generates income or is otherwise
  intended for investment purposes rather than as
  a primary residence. It is common for investors
  to own multiple pieces of real estate, one of
  which serves as a primary residence, while the
  others are used to generate rental income and
  profits through price appreciation.
• The tax implications for investment real estate
  are often different than those for residential
  real estate.

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Why We Invest

• Each person will have their own personal reasons
  why they invest. They are typically seeking one
  or several of the following
• Appreciation
• Cash Flow
• Leverage
• Tax Benefits

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Merits

• Advantages of Investing While Working a Full-
  Time Job.
• There are hundreds of ways to make money in real
  estate.
• You can fully realize the incredible benefit of
  exponential growth.

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Real Estate Investment trust

• A real estate investment trust (REIT) is a
  company that owns, and in most cases, operates
  income-producing real estate. REITs own many
  types of commercial real estate, ranging from
  office and apartment buildings to warehouses,
  hospitals, shopping centres, hotels and even
  timberlands. Some REITs also engage in financing
  real estate.
• Created by the U.S. Congress in 1960
• 1 REITs were designed to provide a real estate
  investment structure similar to the structure
  mutual funds provide for investment in stocks.
• 2 REITs are strong income vehicles because
  REITs must pay out at least 90 percept of their
  taxable income in the form of dividends to
  shareholders.

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Real estate cycle chart
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