Investing in REITs has always been very profitable. In fact according to the charts they have outperformed the SP500 by 300% during the last 20 years. Does this sound totally outrageous? Right? There are a few reasons for this. First of all, real estate as an investment is not really enticing when bought in cash but is very enticing when bought with leverage. What is leverage? It's mortgage. You basically leverage your money usually at ~4:1 and the best thing of all compared to traditional margin investing is that you don't get margin called unless you miss your payment. Even when missing your payment a ton of other measures are usually done, individual bailouts and mass forgiveness in times of hardship. When compounding leverage for 30 years the returns are much better than stocks.
Investing in REITs during the pandemic
Investing in REITs during the pandemic
Investing in REITs during the pandemic
Investing in REITs has always been very profitable. In fact according to the charts they have outperformed the SP500 by 300% during the last 20 years. Does this sound totally outrageous? Right? There are a few reasons for this. First of all, real estate as an investment is not really enticing when bought in cash but is very enticing when bought with leverage. What is leverage? It's mortgage. You basically leverage your money usually at ~4:1 and the best thing of all compared to traditional margin investing is that you don't get margin called unless you miss your payment. Even when missing your payment a ton of other measures are usually done, individual bailouts and mass forgiveness in times of hardship. When compounding leverage for 30 years the returns are much better than stocks.