Our 401(k) meeting had the brokers say that you should not invest in real estate at all at this time. If you want to buy a house, go ahead, but don't "invest". They are dumping all real estate stock ASAP.
There is definitely blood in the water.
Sounds like very good advice to me.
"They are dumping all real estate stock ASAP.
"
Ladies and gentlemen: If you are holding real estate investments other than the home you live in, AND you have any of them financed with any sort of tricky mortgage, GET RID OF THEM INSTANTER!
If the home you live in has an ARM, any sort of interest-only mortgage, or any other sort of mortgage that is not a fixed-rate long term mortgage, try to switch it now...well before the reset date.
Am I an alarmist? In this case, yes.
I represent some clients acquiring an Alabama building with a NNN lease, very strong national credit tenant credit with defense contracts, and a 9.5% cap rate. I am going to own a piece of the building, and it will be free and clear. I will pass on the advice from those brokers.