longs have faith that the ever-aging boomer population will eventually lead to comfortably solvent operators and growth in operations and/or dividend.
It is not clear that the aging population will result in recovery, sustainability, or growth for Omega Healthcare and other Skilled Nursing REITs. By analyzing spending of government programs, patient recovery locations, and consumer preference, it is more evident that hard times will likely continue for these REITs.
Is it worthwhile to incorporate your rental properties and stock portfolio? Capital gains tax rate might be lower or comparable to the new coprporate tax rate, so thereās no apparent advantage. Your rental income and dividend income will be taxed at cooperate rate.
But is there a double taxing issue? Your profit is taxed for corporate tax. Later, when your Corp pays yourself, are you going to pay personal income tax again and plus the payroll tax?
OHI released earning this afternoon and it was a bloodshedā¦ Cashflow shrank and they have to freeze dividend this year. After hour stock fell almost 5%.
To recap I bought MPW and OHI last year to build up my passive income portfolio. They are both REITās focused on healthcare. MPW is into hospitals and OHI deals with skilled nursing facilities.
This year I added two more names: BXMT and NRZ, both mortgage REITās. So now I have a total of 4.
With OHIās rapid deterioration I need to see if I want to keep it in the team. Right now new money only flows into BXMT and NRZ as I build them up to MPW and OHIās level. Come June Iāll need to make a decision. For now i will just keep everybody around.
I was just stating a fact and A contributing reason for my decision, thatās all. At the end of the day, it is all about financials no? Market is high now, losing another tax break, we want a different kind of house for a spell, and I need to be closer to BART soon. Makes sense to meā¦
I donāt own REITs. They are like bond funds. They are getting hurt with inflation concerns. If you own your own building with cash or a low fixed rate you are protected from inflation. In fact inflation is a good thing for landlords with prop 13 and a low fixed rate.
I just bought Exxon stock at $76. Pays 4%, a lot more than high quality REITs and is great in inflationary times. As the dollar loses value oil prices will rise. My wife bought Exxon at 87. She is jealous and will buy more at these bargain prices.
My impression is that multi family REITs have very low dividend yield. Itās more profitable to own rentals. But if someone has no interest to be a landlord, sp500 can be better than REITs.
Business changes but human residence doesnāt change much.
All REITs dividends are non-qualified, that means taxed as income. It is an issue for higher tax bracket.
If it is qualified dividends, we pay less tax esp for LTCG.
I was holding REITs, OHI, MPW and few others, but finally decided not worth as I feel dividend providers, such as GM, XOM, BP, BA, CSCO, and AAPL returns are better than REIT returns with qualified tax treatment.
OHI may be in a bloodshed but your investment is so small, hardly make any difference to the value of your stock portfolio. I have some OHIs too, $1000 in the red. Guess is good to be melodramatic to release stress fromā¦?
Detroit? Technology changes do affect desirability of certain region. Long ago, central regions that are suitable for agriculture are desirable, then regions near ports become desirable, now hi-tech hubs are desirable. Future??? Any guess???
Cashflow shrank and they have to freeze dividend this year. After hour stock fell almost 5%.
are desirable. Future??? Any guess???