HomeVestors Discusses Whether Or Not REITs Are A Good Investment In 2014


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Those who understand the market conditions that allow REITs to thrive are able to make an intelligent decision regarding their potential in 2014. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that many investors have chosen passive real estate investments over the last couple of years due to their profitability.  Those who invested in REITs from 2008 to 2012 earned substantial dividends and capitalized on the large number of foreclosures during this period of time.  Here we will discuss whether or not REITs are a good investment in 2014 and beyond?

In order to determine whether or not REITs Are A Good Investment In 2014, one needs to understand the real estate market.  The reason that REITs thrived from 2008 to 2012 is because they took advantage of the growing number of tenants throughout the United States.  As homes were foreclosed, a large number of people had no other choice but to rent property.  In 2013 the foreclosure numbers took a nosedive and those who held REITs didn’t receive the dividend they did in the previous years.

As property values increased over 2013, many owners of underwater houses found a way to reach the surface.  The owners of many of these properties decided to sell them while they were given the chance.  Many of these owners have since downsized and haven’t had to resort to occupying rental property.  While there was an increase in the number of rentals in 2013, it certainly wasn’t as profound as the increases in the years preceding it.

In order to decide whether or not REITs Are A Good Investment In 2014, understand that REITs benefit from low interest rates.  As soon as the interest rates increase, the profitability of REITs decreases.  One should expect that interest rates are going to increase in 2014 due to the Fed tapering the QE Program.  As soon as this happens, expect the market to come down hard on the dividends that REITs are able to give out.

Those who still feel that REITs Are A Good Investment In 2014 absolutely need to do their research and find a company that exceeds market expectations.  This company should be well diversified in order to capitalize on a large range of rental property, from commercial property to storage units.  Those who place their money in a well-diversified REIT stand to earn profits in 2014, but shouldn’t expect the returns they received from 2008 to 2012.

Those who know whether or not REITs Are A Good Investment In 2014 are able to make an informed deduction regarding their profitability.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh consecutive year, HomeVestors was among the prestigious Franchise Business Review’s “Top 50 Franchises,” a distinction awarded to franchisors with the highest level of franchisee satisfaction.  For more information, visit www.HomeVestors.com.

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