Found 9 Articles.
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Wall Street pushes financial assets as the route to financial independence. But several studies I’ve seen say that real estate is the key difference between the very wealthy and others. This article says that land is at least as important and might be the key difference between the 1% and others. But ignoring land is […]
I’ve long argued that people should view their homes as consumer goods, not as investments. If you make money on your home, that’s great. But most people don’t, especially after factoring in inflation and the costs of home ownership. This article points to a study that reaches the same conclusion. The authors say that home […]
Vanguard’s had a large fund invested exclusively in an index of real estate stocks. Recently, real estate stocks were added as a separate sector to the S&P 500, boosting their share of the index. The result is that the various Vanguard funds are now the largest shareholders in most real estate investment trusts in the […]
This blog post analyzes the S&P Case-Shiller home price data to look at long-term trends in both nominal and real (after inflation) prices for average homes in major markets. It points out that the question home buyers need to ask today is: What will people be able to pay for this home after mortgage interest […]
The Federal Reserve is keeping normal interest rates near zero, so investors who need income have to look elsewhere. Many are attracted to mortgage REITs. While strategies differ, a mortgage REIT generally borrows money at low short-term interest rates and lends it long-term in mortgages that pay higher yields. Some lend the money directly or […]
The room at college doesn’t have to be an expense. It can be a tax break, with the potential for income and capital gains. It also might be a way for parents or grandparents to acquire a retirement home or second home. You can get these benefits by purchasing a place for your grandchild or […]
Real estate investment trusts have been important parts of our portfolios. Cohen & Steers Realty Shares has outperformed the S&P 500 for the last 10 years, for each of the last four full years, and so far in 2004. Unfortunately, the good news about real estate and REITs is being used to entice investors, especially […]
More and more investors are realizing why a long-time anchor in our portfolios is real estate. These investors and their advisors have learned to follow our example. A big advantage of including real estate in a balanced, diversified portfolio is that real estate tends to be non-correlated with stocks. That means real estate usually appreciates […]