Real estate has long been the go-to investment for those looking to build long-term wealth for generations. Let us help you navigate this asset class by signing up for our comprehensive real estate investing guide.
Malls emptying at a record clip, rental affordability rocked by pandemic, co-working to fill office space, two mortgage REITs to consider, and GEO Group under the gun.
In Today’s News
CNBC reports today that the vacancy rate for regional malls in the United States hit a record 11.4% in the first quarter of 2021 and just notched a record spike from one quarter to the next, according to Moody’s Analytics’ (NYSE: MCO) commercial real estate division.
The Millionacres takeaway: Investors in retail REITs (real estate investment trusts), especially malls, will have to pick and choose even more carefully to see gains in this troubled sector. Here are two to consider.
A report released today by Zumper shows graphically how rents have fallen in the most expensive cities with the highest incomes and rose in cheaper areas where incomes tend to be lower. The result, according to the report: “Thus, 2020 gave rise to a divergence between rents and income, which likely led to an aggregate decrease in housing affordability in the U.S.”
The Millionacres takeaway: Investors who have or can procure safe housing in the affordable ranges for their communities will have no problem finding tenants. Here are some tips about that from one of our writers.
The Millionacres takeaway: This Bisnow Houston article shares insight from operators in that huge market. Check out this piece of our own about doing the same in pretty much any suburban setting.
Today on Millionacres
Mortgage REITs that have maintained a strong portfolio of debt assets through the pandemic are positioned to enjoy a nice boost in earnings over the next couple of years. But not all mREITs are created equally.
The Millionacres takeaway: Our Kevin Vandenboss explains why two such mREITs stand out for their exposure to both the commercial and residential mortgage markets.
For-profit prison operator GEO Group (NYSE: GEO) has suspended its dividend and is evaluating whether it makes sense to remain a REIT or follow fellow private prison operator CoreCivic (NYSE: CXW) in converting back into a traditional corporation.
The Millionacres takeaway: Both these REITs are facing pressure from a Biden administration that has decided not to renew their federal contracts. While there’s still business from other sources, that may not be enough to make either of these firms a sound long-term investment.
Got $1,000? The 10 Top Investments We’d Make Right Now
Our team of analysts agrees. These 10 real estate plays are the best ways to invest in real estate right now. By signing up to be a member of Real Estate Winners, you’ll get access to our 10 best ideas and new investment ideas every month.
Find out how you can get started with Real Estate Winners by clicking here.