Even Investment Fund Managers Are Capitalizing On The Current Real Estate Deals
I found the following article interesting and have always felt real estate whether commercial or residential is a great long term investment when “properly bought” – especially when prices on all classes of property, commercial, condos, second homes and bank foreclosures, as well as purchase money is at an all time low. Robert Whitfield
From Reit.com
September 29, 2010
New data show the proportion of retirement and profit-sharing plans that include a commercial real estate investment option jumped from 24.8 percent in 2008 to 33.4 percent in 2009.
The finding was reported by the Profit Sharing /401k Council of America (PSCA), a non-profit association of 1,200 companies that sponsor defined contribution (DC) plans for 5 million employees, in the 53rd Annual PSCA Survey of Profit Sharing and 401(k) Plans.
According to Kurt Walten, senior vice president of investment affairs and investor education for NAREIT, the survey confirms changes NAREIT has seen firsthand.
“The recent PSCA survey validates the trends we are seeing as part of NAREIT’s outreach efforts directed at the DC space, which represents one-third of the $15 trillion retirement market,” Walten said.
Along with the increase of REIT allocations in these funds, the survey shows more employees are participating in DC plans. The level of enrollment in DC plans rose from 85.5 percent in 2008 to 87.3 percent in 2009.
Walten said NAREIT has witnessed the growth in the popularity of REITs in DC plans through direct meetings with DC plan sponsors and investment product managers. REIT options are proliferating in 401(k) plans and target-date funds, according to Walten.
“It is notable that whereas as recently as 2005, a minority of target-date fund managers were investing in real estate, a 2009 study by investment consultants Callan Associates found that 73 percent of target-date fund managers had a dedicated real estate allocation in their offerings,” Walten said. “And most target-date and target-risk fund products provide real estate exposure exclusively through the use of publicly traded REITs.”
Walten attributed the growth of REIT offerings in DC plans exhibited by the PSCA data to the recognition of the benefits REITs offer investment portfolios, such as diversification and protection against inflation.
In addition to helping homebuyers and investors with the location and purchase of Atlanta investment deals, I also work with a variety of resort property developers all accross the south east and the Bahamas, Cental and South America – visit the Resort Properties page on this site often to see new properties as they come on board.
Contact me anytime for more information at 678-585-9691.
Robert Whitfield
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