Is right now a good time to invest in REIT?

Question

If I look at the trend in recent history it seems that real estate will compensate soon enough. Also, some experts say one should't time the market.

However, the bubble hasn't burst yet in a few states and some people I've talked to say that it's most likely going to drop further.

Answer 1

I think real estate in the US has gone underpriced in many areas relative to the true value of the present dollar after adjusting for inflation.

However being cheap does not make something a good investment.  The fundamental shool bases its logics on an efficient market hypothesis and looks for favorable changes in factors that cause supply and demand pressure.  The technical shool, on the other hand, bases its thought on behavioral finance and looks for conservation of price movement momentum.  Presently, neither of those signals seems to point to a REIT uptrend.  

Therefore, in my opinion, unless you have a rather long time horizon to park your cash or you have a special tax situation, REIT may not be the best choice.

Answer 2

No, the economy is still in a downword spiral and will be for at least the next 8 to 12  months, houseing values are dropping, which means commercial is dropping also, pick a fund and watch and wait a few more months before thinking about investing. If your looking for hot places to invest look at Asia and South America untill the real estate sector here in the USA starts to recover.

Answer 3

I believe so. 90% of REITS aren't tied to the residentual market. Most REITS are invested in commercial, office space, storage units, hospitals, etc. They have come down, but still beat the stock market.

Answer 4

Hi

Yes Yes

Its not the end or the beginning.

Don`t panic it always works out, no-one gets hurt.

Peter Matty