The real estate industry’s performance in 2013 may have been far from stellar, but it does have a few high points. Granted, high interest rates have resulted in a large inventory of properties for sale albeit with fewer buyers. However, WealthManagement.com argues that this could be a good thing since the environment for 2014 seems to favor investing in real estate investment trusts or REITs:
“REITs often sell at premiums of 2 percent or more to the appraised value of their properties. After the sluggish showing, the shares now sell at discounts of 7 percent to 10 percent, says Steven Brown, portfolio manager of American Century Real Estate (AREEX). “When rates rose, REITs went into the doghouse,” says Brown.”
Such things would usually fly past the radar of homeowners who don’t employ reliable wealth management firms, thus denying them an opportunity to gain more wealth with what they have. After all, when it comes to managing family assets, it’s not just about ensuring that properties are secured for the long term, it’s also about making sensible investment decisions with tools like real estate listings, insurance trusts, and the like. A reputable Reston wealth management firm like AOG Wealth Management can help high net worth clients identify the right investment opportunities according to their goals and preferences.
One such lucrative venture would be REITs, which enable homeowners to invest in multiple commercial and residential properties in their communities. Unlike other investments, REITs are very diverse as shares can be traded rather easily. Taxation is also fairly straightforward with REITs since they are taxed at the individual level.
In any case, many financial experts point out that estate planning should take place as early as one’s college years. Legally speaking, people as young as 18 are already qualified to write their own wills, although this is another story for another day. The point is that even youngsters with enough financial sense can already make investment decisions. However, investors are highly prone to committing costly mistakes without the help of reliable Potomac wealth advisors who can help them steer clear of the issues that haunted the market in 2013.
(Article Information and Image from A Real Estate Revival?, Wealth Management, January 7, 2014)