New Real Estate Sector (REIT)

RERA brings in clarity and order in the conventional unorganized real estate market in India. The transparency generates trust between both parties and brings in the right time to invest when the market is down and beaten

I feel like that headline is horribly misleading. REITS are all about the dividend/yield. When bond yields increase, REITS are going to lose value. Their yield needs to offer a premium to bond yields. Anyone who doesn’t get that should never write a finance article.

With the new tax laws if you hold REITs in a taxable account you can get a deduction. So this should make REITs more desirable provided they can get out of the this nasty bit of increasing interest rates.

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Reits are interest sensitive

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REIT’s will look less attractive if no risk treasury rate rises. By the same logic rental housing will also look less attractive.

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Better to own rental housing since inflation will protect the price. Rental yield might be less appealing but home price will still go up in the long run. The beauty of RE is that time will cure all your mistakes

Rental housing will do ok unless the 30 year mortgages go over 5%

It could go over 5%. We don’t know the inflation trend yet, it’s a wild card

No need to worry yet

How a Rundown Square Near Boston Birthed a Biotech Boom and Real Estate Empire

https://www.bloomberg.com/news/features/2018-10-05/how-a-rundown-square-near-boston-birthed-a-biotech-boom-and-real-estate-empire