REITs and Luxury Oceanfront Condos are Great Investments Again

September 6, 2012

Many people are investing in real estate in more than one way these days. A lot of people are purchasing real estate investment trusts (REITs) in addition to buying luxury oceanfront condos, because the real estate recovery is looking so good. 

REITs have been performing better than any other fund group over the past three years, with a 33 percent average annual gain according to Morningstar data. It isn’t expected that REITs will remain at that level, but it seems to be a great investment at this time.

U.S. home prices rose a fourth month in a row making it very attractive for investors to purchase REITs, and attempt to make money when things really turn around. Many real estate investors think this will happen soon, especially in South Florida. Foreclosures were also down by about 20 percent compared to last July.

Home builder shares have been climbing as well. They perform differently as investments then REITs though. They also began recovering later than REITs did. The main difference is that REITs are set up in such a way that they generate income quickly.

"The stocks of home builders are the purest play if you want to participate in the recovery of the housing market" says Sorin Roibu, global security analyst who covers the housing sector at Turner Investments.

Full Story: U.S. News And World Report