REITs and interest rates | FerrariChat

REITs and interest rates

Discussion in 'Other Off Topic Forum' started by UroTrash, Mar 16, 2004.

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  1. UroTrash

    UroTrash Three Time F1 World Champ
    Consultant Owner

    Jan 20, 2004
    38,942
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    Clifford Gunboat
    #1 UroTrash, Mar 16, 2004
    OK, you all seem like a bunch of bright scholarly guys, what do you think will happen to REITs as (if?) interest rates climb over the next 3 to 4 years? I would think they would get whacked, but I have also read they tend to track the stock market indices now-a-days. Well, what do you think? .....Does this relate to F-cars? Well certainly!!! The more moola ya make, the more cars ya buy!!



    mdstrib
     
  2. NY Joe 360

    NY Joe 360 Karting

    Nov 2, 2003
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    Joe
    #2 NY Joe 360, Mar 16, 2004

    REITs are already kinda whacked because of higher than expected vacancy rates, amoung other factors. If the real estate market improves, their yield will improve. Unlike bonds, the underlying property it's worth less money as the rates go up. REITs are nice to complement your portfolio, but I wouldn't put more than 5-10% in them.
     

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