Is It Time to Get In On REITs?
One of the things that many investors have been shying away from is real estate. And with good reason. Real estate is having a hard time right now, and real estate investment trusts (REITs) are in trouble along with the rest of the real estate market. But, as with all things investing, if you choose carefully, now might be the perfect time to get in on the market — while there are bargains to be had.
Credit market crisis brings REITs down
The credit market crisis is one of the reasons that real estate investment trusts are having such a hard time. BusinessWeek points this out:
“The harsher credit environment and weak economy has forced some REITs to scrap or halt their development plans,” explains Robert McMillan, an S&P REIT equity analyst. “New retail and industrial space had already started declining before the September/October credit crisis (due to higher construction costs), but should plummet in 2009. Long term, this should have positive implications for the larger REITs by giving them better pricing power.”
But the potential for the future is fairly good. At some point this housing market crisis and this economic downturn are going to end. And by getting investments — including REITs — now, while they are cheap, you might be in good shape. Beth Piskora offers these as some possible REITs:
Company Ticker S&P STARS Rank American Campus Communities ACC 4 Essex Property Trust ESS 4 Mack-Cali Realty CLI 4 Nationwide Health Properties NHP 4 Regency Centers REG 4 Sun Communities SUI 4
REITs, or real estate investment trusts, are companies that invest in various real estate related companies, developments and projects. They are traded as individual equities on the stock market, and can be added to retirement accounts.
Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.
