Real Estate Is a Great Investment! Even In A Down Market

Real Estate Is a Great Investment!  Even In A Down Market

Bottom line, we need shelter.

Real Estate Investments (REITs) are a vital and significant part of our real estate landscape.  Certainly, real estate has its recessions and hiccups, but it always comes back, and thankfully so. Real estate is a pinnacle part of our economic well-being.  So much revolves around real estate.  From land-use to lumber, quarries, to builders and developers, transportation by truck, train, and ships to insurance, architects, real estate agents, and attorneys.  Home Depot says it all!  From Lowe’s, Ace Hardware, HomeGoods, to flooring and lighting, steel, concrete, and furniture.…, the list goes on.  What do they all have in common?  Real Estate.  We need shelter to live in, work in, go shopping, entertainment, and health care.  Real Estate is a great investment.  Like any investment, you need to be prepared for the downtimes, and calculate your risk, just like any other industry. With real estate, you can invest in real property, and REITs.  Pretty sweet.

Sticks and Stones may shelter our bones, and Terra Firma isn’t expanding anywhere soon!

They aren’t making any more of it… so invest in land.  Truer words have rarely been spoken.  Though the ocean spits out tiny islands now and again, and lava may flow, and Sheikh Mohammed bin Rashid Al Maktoum, the United Arab Emirates’ prime minister and Emir of Dubai, may be the mastermind behind the man-made islands of Dubai; our land masses are not growing exponentially. Investing wisely and being able to hold long-term, is key.

What Would A Billionaire Do?

When thinking about investing, think like the HNWI (High Net Worth Individuals) think.  Can you afford to spend $103,000,000.00 on a property? (Call me, if you can or can’t, I can help!)  Most people can’t, but you can do the same within your budget.  Think about luxury kitchens and baths.  The rich and famous set the bar on what is needed and wanted in their dream homes, and the rest of us take note and replicate it at our price point.  The point is,  prudent research is advised, and know your risk threshold for both real property and REITs.

“The official launch of the S&P 500 real-estate sector—the first S&P 500 sector to be added since 1999—has driven a hefty amount of attention to the Real Estate Select Sector SPDR exchange-traded fund XLRE, -0.69% the biggest ETF to track the index directly.” Source from MarketWatch–RYAN VLASTELICA

What Would Buffet and Rogers Do?

Cannabis, Crypto, and Blockchains may come and go, while REITs and real estate is here for the long haul.  Think about Buffet, and where he and his friends like to invest their money.  Steady and slow has a better return than fast and imploding.  My friends, “If you’re gonna play the game, You gotta learn to play it right.  You’ve got to know when to hold ’em, know when to fold ’em, know when to walk away, and know when to run.  You never count your money when you’re sittin’ at the table, there’ll be time enough for countin’ when the dealin’s done!  Thank you, Kenny.

Conjecture, Prophecy, Fingers crossed, and a Pinky promise

Unless Godzilla and family come out of the oceans and destroy all of civilization as we know it…, there may be a slight snag in real estate investments, but not for long.  Real Estate is the foundation of our civilizations. It’s in our DNA.  REITs are right.  They are a great investment in the real estate sector, especially if you don’t want to buy more than one property, or the idea of tangible property is not right for you at this point in time.   The great thing about REITs, they are backed by tangible assets that produce money, not conjecture, prophecy, fingers crossed, and a pinky promise.

Our Foreseeable Future

REITs are strong because there is nothing in the foreseeable future that will replace dwellings, buildings, and land.  Unless we colonize Mars and the Moon, I think we’re good.  Plus, REITs offer investors the benefits of real estate investment along with the advantages of investing in publicly traded stock. REITs have traditionally delivered dividend-based income, transparency, protection from inflation, portfolio diversification, and liquidity.

So, whether you want to invest in real property or in a REIT or both, real estate is a great choice to consider.

Oh, in case you are wondering what I’m talking about, this is what a REIT is as per Nareit:

A REIT (pronounced REET), or real estate investment trust, is a company that owns, operates or finances income-producing real estate. Modeled after mutual funds, REITs historically have provided investors of all types regular income streams, diversification and long-term capital appreciation. 

REITs invest in much of real estate property types, including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels. Most REITs focus on a particular property type, but some hold multiples types of properties in their portfolios.  



What Others Are Saying

About the Author

Real Estate Is a Great Investment!  Even In A Down Market

Davis & Co.