Ritz investment law

Ritz investment law is actually a real estate trust and investment fund, which collects the funds of a specific majority of investors by issuing income certificates.

First, the advantages of real estate trust and investment funds

In recent years, real estate trust and investment funds are increasingly favored by investors, and their advantages can be summarized as follows:

1. Make real estate investment small, mobile and simple. Because real estate investment involves a lot of money, it is difficult for most investors to make large-scale real estate investment. Real estate trust and investment funds raise public funds in the form of income certificates to engage in large-scale and diversified real estate investment, which makes investors' investment in real estate change into investment in securities, reducing the investment threshold and operation difficulty. Especially for small and medium-sized investors, they can enter the non-residential real estate investment field that is difficult to get involved because of the high capital threshold.

2. It has high liquidity. Real estate trust and investment funds reflect the value of real estate through securitization. After securities are issued, they will generally be listed and traded in the securities market, which greatly improves the liquidity and liquidity of products.

3. Product income and dividends are relatively stable, and there is a certain increase. Real estate trust and investment fund products are mainly rental income, and the main part of general income (more than 90%) is used for dividends, so REIT's income and dividends are relatively stable compared with other financial products. At the same time, real estate trust and investment funds have a certain growth, mainly in two aspects: first, with the development of social economy, the rental income of property has increased, and second, the fair value of property held has increased.

4. The correlation with stocks and bonds is low, and joining the portfolio can effectively spread risks. The income/risk characteristics of real estate trust and investment funds are between stocks and bonds, but the correlation between them is not high. Therefore, many investors regard real estate trust and investment funds as the fourth kind of assets besides stocks, bonds and cash.

Second, the shortcomings of real estate trust investment:

1. Large investment; (The minimum down payment is 30%, usually at least several hundred thousand, and the first-tier cities may be several million. )

2. The transaction procedure is troublesome and difficult to realize; (It usually takes 3-6 months or more from listing to trading)

3. High transaction taxes and fees; (generally 1%-8%)

4. Low rental income. (In many first-tier cities, the rent of houses worth 5 million yuan is less than 6.5438+0 million, and the rental return rate is less than 2%.)