Anyone who thinks real estate is a great investment opportunity should just invest in a REIT. I am working with a client right now who is repositioning assets in retirement, and our first order of business is to sell off the real estate.
“Anyone who thinks real estate is a great investment opportunity should just invest in a REIT.”
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Real estate can be a good investment in certain circumstances but it requires time and effort, the ability to invest without the immediate benefit of liquidity, and an understanding of tax implications.
As you may know, there are hundreds of publicly traded REITs that invest in all manner of properties. Its important to understand what their individual focus is. That said, if interest rates decline it could potentially benefit REITs in terms of rising share values. But again, its imperative to understand what they invest in and how they are valued (i.e., FFO/AFFO). Also need to be aware of related tax issues, one of which could change in the U.S. next year.