Intelligence

3 Reasons to Revisit REITs in 2018

According to a new paper from UC Davis, the housing market was the best investment of the last 150 years. This story will dive into why REITs, in particular, are an attractive option for real estate investors right now. 1. The new tax bill reduced the rate at which REIT dividends are taxed. What does that mean for investors in general, and which investors stand to benefit the most from investing in REITs going forward? 2. If the Fed raises rates this year, which seems certain, how will that affect valuations of REITs? With REITs currently undervalued, what benefit would investors see by buying in early in the year, ahead of the rate hikes? Are there any potential negative effects rising rates may trigger for REIT investors? 3. Given the UC Davis data on housing, are REITs a good buy for investors who may be worried about the current bull market’s historic run drawing to a close? And are REITs in general a good way to hedge against volatility? 4. What should investors be considering as they invest in REITs? For example, yield, growth potential, performance, etc.? 5. Which REIT sectors are poised to fare the best in 2018, when current economic conditions, forecasted rate hikes, current valuations and the overall direction of the market are factored in?