Brad Thomas contributing to Forbes about the “Flight-to-Quality” where investors sell what they perceive to be higher risk investments and purchase safer investments. In this case, he’s seeing REITs as the beneficiary.
Jussi Askola writes about why REITs outperform stocks over the long run, noting “Any asset class can outperform over a 1-year or even 5-year time period, but you don’t come ahead for decades and decades by pure luck.”
Joel Beam notes that REITs have outperformed “meaningfully” versus the broader market since April 30. He continues with, “The opportunity to earn consistent, high-single or low double-digit returns from a low volatility asset like real estate, with an important income component as a part of that total return calculus, is very, very attractive for long term investors…” as a potential result from trade tensions.
This is an interesting article by Stephen McBride about how STORE Capital targets a market that is difficult for Amazon to disrupt and how Warren Buffett’s only real estate stock is found in his 10% stake in them. We also have eschewed the conventional wisdom that REITs should focus on a single property type. If diversity is a strength in your stock portfolio, shouldn’t it also be a strength of your real estate portfolio? Our focus on effective new urbanism and multi-use properties reflects our belief in an awakening desire to escape the gridlock of crowded highways and return to a simpler lifestyle.
In Alabama we have 158 qualified opportunity zones, with at least one in each of our 67 counties. Do you know where they are in your state? Long and short of the tax implications: Invest capital gains from any source into an opportunity zone and hold for 10 years to defer taxes on the capital gain for that hold period and then only get taxed on 85% of the gain. Further, pay zero taxes on any money generated from the investment over the 10 year hold period. Pretty compelling, don’t you think?
