Displaying items by tag: real estate

Despite the ongoing challenges in the residential REIT sector, some companies are well-positioned to benefit from strong demand and strategic advantages. Equity LifeStyle Properties, for example, focuses on manufactured home communities and RV resorts in high-demand locations, benefiting from favorable demographics and constrained supply. 

Veris Residential, with a modern Class A portfolio and a tech-driven approach, is poised to capitalize on scalable growth in the Northeast market. UMH Properties, which operates manufactured home communities across several states, is likely to see continued demand, particularly due to high mortgage rates that make renting a more viable option for many. 

These REITs are leveraging technology to enhance operations and optimize revenue, allowing them to adapt to evolving market dynamics. 

Finsum: Including an influx of new rental units and increased concessions, these companies offer strong prospects for future growth.

Sixteen years ago, alternative investments barely featured in most portfolios, aside from a modest allocation to commodities. Options for retail investors were limited, with most alternatives either prohibitively expensive or inaccessible. 

Today, portfolios tell a completely different story, with many being dedicated to alternatives like private equity, private credit, and reinsurance, reflecting how the landscape has evolved. 

Advances such as interval funds and lower fee structures have opened doors for individual investors to tap into the benefits of these assets, including the sought-after illiquidity premium. Unlike the past, where high fees often negated returns, competitive pricing and improved liquidity have made alternatives a more viable choice. 

Finsum: These innovations now allow for greater diversification and the potential to cushion traditional portfolios against market volatility.

Over the past five years, inflation in the U.S. has reached its highest levels in decades, peaking at 9.1% in mid-2022 before cooling to around 2.7% as of late 2024. While inflationary periods are inevitable, investors can take strategic steps to protect their wealth. 

Warren Buffett, with a net worth exceeding $142 billion, advocates two timeless approaches to counter inflation’s effects. First, investing in yourself—enhancing your skills and abilities—ensures enduring value, unaffected by economic fluctuations. 

Second, Buffett highlights real estate’s intrinsic worth, noting its stability and potential for appreciation even during inflationary spikes. Real estates inherently built into the CPI making up 40% providing a strong safeguard against inflation. 

Finsum: By focusing on assets with lasting value, investors can safeguard their financial health in uncertain times.

Real estate investment trusts (REITs) offer an appealing option for investors seeking steady passive income, though dividends are never guaranteed. They are required to distribute at least 90% of rental profits as dividends, often yielding attractive returns. 

Additionally, REITs diversify risk by owning numerous properties across various sectors, including industrial, commercial, and residential, which investors might otherwise find inaccessible. 

Segro, a REIT specializing in warehouses across Europe, benefits from high demand and low supply, driving strong rental growth and a projected 4.2% yield for 2025. Grainger, the UK’s largest listed residential landlord, leverages the rental housing shortage to deliver robust earnings growth, offering a reliable 3.6% dividend yield with expectations of further increases in the coming years.

Finsum: With tenants locked into long-term contracts, rental income from REITs tends to be stable and predictable.

Several Western and Midwestern cities, including Boise, Idaho, and Stockton, California, are projected to join the "million-dollar club" in median home prices over the next decade. 

Realtor.com's forecast estimates Boise’s median price will rise from about $464,000 to $1.2 million by 2033, following a strong growth trend seen in previous years. Other cities expected to cross the million-dollar mark include Salt Lake City, Portland, and Colorado Springs. Stockton’s proximity to costly Bay Area markets is driving its prices, with an anticipated median of $1.4 million by 2033. 

Denver and Sacramento are also projected for substantial gains, reaching approximately $1.3 million and $1.1 million, respectively. These forecasts hinge on continued demand and limited supply, but a surge in new construction could temper these projected gains.

Finsum: One key aspect of this to watch is how fast wages are growing in these cities as this is a strong indicator of future home price growth