There may not be a better time for investors to consider adding a REIT portfolio to their existing asset management strategy. A perfect storm is brewing, and those that get in early could be in line to capitalize on very encouraging dividend yield forecasts.Â
For what it’s worth, the real estate industry has done very well for itself in the current post-recession market environment. Homes have appreciated at a torrid pace and equity has returned to cities that have been void of it for far too long. What’s more, the unemployment rate has improved significantly and should buttress the entire economy. Nearly every fundamental indicator is better off today than it was just a few short years ago. Having said that, the recovery has certainly contributed to the portfolios of savvy real estate investors across the country. Those who bought at the depths of the recession are likely reaping plenty of rewards.
It’s worth noting, however, that the current recovery has done a lot more than help those who currently own property or even a real estate portfolio for that matter. Not surprisingly, real estate investment trusts (REITs) have made headlines for the better part of 2016 for one simple reason: the housing recovery. REITs are growing in congruence with the housing sector’s improvements, and the need for a REIT portfolio has never been greater. The more ground the housing recovery gains, the more relevant REITs become to respective investors’ real estate portfolios. It’s not a coincidence that REITs have outpaced the broader market indices since the onset of the recovery.
I maintain that a properly diversified real estate portfolio must contain both near-term and far-term investment opportunities. In addition to the passive income rental properties and rehabs that have become synonymous with today’s residential redevelopers, investors must solidify long-term yields with the help of a REIT portfolio. Nothing, at least that I am aware of, carries more promise for long-term dividend yields at the moment than real estate trusts. Do yourself a favor and at least consider what the advantages of a REIT portfolio in today’s market could mean for your financial future.
