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Message Boards Settings Alpine Realty Income & Growth - Quote Info
Why you should buy down here     17-Mar-09 01:14 am    
There are three reasons to invest in REIT's: non-correlation with the stock market, capital gains, and yield. The first two have been a bust in recent months, but yield deserves a closer look.

AIGYX yields about 18% as of this writing. I know, I know, it's factoring in possible drops in dividends and further capital loses, but let's look at what is priced in.

Lets assume a horrible economic conditions continue far into the future. Let's assume that rents drop by 1/2 and NEVER RECOVER. That would drop the yield to about 9%. Let's further assume that capital loses continue forever at a rate of 5% per year and that real estate prices NEVER rise above their current level. Even under these conditions this fund will yield 4% as compared to <3% on T-bills. Forget treasuries, I'm buying at this level.

Other opinions?


Sentiment : Buy
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jps085s

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Jasper, Ind...


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Why you should buy down here
jps085s Not rated 17-Mar-09 01:14 am  
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Alpine Realty Income & Growth (AIGYX)

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On Dec 4: 12.18 Up 0.27 (2.27%)
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