Silvana Saldisuri
07/19/2021 6:01 AM
Clarín.com
Services
Updated 07/19/2021 6:01 AM
The real estate sector is one of the most demanded by Argentines to invest their capital.
The fact that it is a tangible asset and is negotiated in dollars generates
security and tranquility
for local economic agents.
However, for retail investors, doing it in the traditional way presents serious limitations at the time of carrying it out due to the amount of money necessary to invest, the low liquidity and the costs involved in
acquiring a property
on your own.
There is currently a
more accessible alternative
for those interested in investing in the real estate sector through an instrument known as
Real Estate Investment Trust
(
REITs
), which is available to
operate in the
United States market
.
You can invest in REITs from $ 1,000.
Photo / Marcelo Carroll
It can be accessed directly by activating an
account in the US
through an investment platform,
it has no opening or maintenance cost
and it is done
100% online
.
"For Argentines it is a
very attractive alternative because they are bricks and dollars
, which is what they most seek when it comes to safeguarding their savings and making a periodic income," said
José Bano
,
Research Manager of Invertir OnLine
, to
Clarín.
.
What are REITs?
They are companies similar in operation to the Mutual Funds,
focused on the real estate sector
, whose shares are listed on the US Stock Exchange and can be acquired by
retail investors
.
These companies generate
profits
, which are then
distributed among their investors
, mainly through the rental of facilities such as offices, hotels, supermarkets, shopping centers, industries and hospitals.
The great difference with traditional investment instruments in the sector is that the main objective of REITs is not to obtain returns through the revaluation of the property, but rather that they hope to generate profits through
periodic income from rentals.
Currently, this instrument provides an annual income of 4% in dollars.
Photo / EFE
In short, it is an instrument through which investors can
access
a sector of the economy
with very low amounts
that, directly, would be much more expensive and risky.
From Investing Online, they emphasized that "to take notion, while
in Argentina
no less than
$ 100,000
is needed
to buy an apartment
, with only
$ 1,000 one can get a portfolio of REITs
from the most diverse real estate sectors" .
What is the profitability of REITs?
REITs outperformed the S&P 500 (it is one of the most important stock indices in the United States) in 15 of the last 25 years.
That is to say that, so far in 2021,
the S & P500 rises 15%
while
REITs
grow twice as much, at 28%
.
"When you look at history,
not only does it beat the market
, but in the last 25 years
the annualized yield is 11%
. Currently,
the instrument provides an annual income of around 4% in dollars
, compared to at least 2 % who leave the rental of a property in Argentina ", they add from OnLine.
On the other hand, according to the Head of Research of Inviu, Diego Martínez Burzaco, "
REITs,
to be classified as such,
are required
by law to comply with some conditions. Thus,
75% of their assets must be invested in real estate
, 75% of their income must come from real estate (rental income, mortgage interest or capital gains) and they must distribute
90% of their net income
. That is why they pay high rent. "
In this way, the law ensures that companies invest exclusively in real estate and
its shareholders receive almost all of the income generated
(net of administration and management expenses).
REITs manage everything from hotels, residential properties, to clinics, nursing homes, and first-rate health centers.
Photo / AFP
What are the best REITs to invest in the current context?
1. Retail sector (goods and services): it
is the one with the greatest breadth and one of the most traditional.
The pandemic affected the sector causing them to be the second segment with the worst performance in 2020. However, with the return to normality, it is one of the most promising.
2. Accommodation sector focused on hotels and restaurants:
serving both vacationers and business workers.
Another sector that is promising with the advancement of vaccination.
3. Residential Sector:
They specialize in apartment buildings, student housing, manufactured homes, and single-family homes.
They can be targeted by specific geographic area or also on property classes.
4. Sectors that provide health facilities:
nursing homes, hospitals, clinics and infirmaries.
Not only did they grow strongly with the pandemic, but in the long term with the aging population, the demand for nursing homes is expected to continue to increase.
5.
Apart from these options, there is also the alternative of
investing in the real estate sector as a whole.
From InvestOnline, the investment in ETFs stands out, which are investment funds that have the peculiarity of being listed on the stock market and that are made up of multiple assets, offering the possibility of diversifying the position.
It can be accessed by activating a US account through an investment platform.
It is 100% online 100%.
Photo / Clarín Archive
How to invest in REITs?
1.
Choose an
ALYC agent
(Settlement and clearing agent), or better known as a
broker or financial agency
.
2. Open an Investment Account in the United States.
This management is quick and easy and is done through the website of the agency with which you have chosen to operate.
It can be done from just US $ 1,000, with no maintenance or opening cost.
A
selfie of the face
, a photo of the front and another of the back of the
DNI and some personal information will be
requested
.
It is 100% online, with no opening or maintenance cost.
3. Deposit money into the Investment account
through a transfer of dollars from a bank account, in which it is the holder, to the account that appears on the financial agency's page.
Once the money is credited, you can start trading.
4.
From that account, you can
choose and
directly
buy
the
shares of the REITs
, or diversify through ETFs (Exchange-Traded Funds) specialized in this type of asset.
However, if knowledge is lacking, the
team of specialists
from the different investment agencies can guide the interested party on what this investment is about and which are the most attractive REITs in each sector.
5. How it is charged:
there are REITs that pay quarterly and semi-annual dividends.
That quota of money goes into the investment account that is in dollars.
LN
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