Team Thayer Property Servicing

There is a housing shift occurring in the investment market. Major investors are gravitating toward purchasing new homes for rental use. During the housing crash, big investors stocked up on thousands of foreclosed properties for single-family rentals with intentions of selling them when home prices recovered. But they didn’t. Now that the housing market is recovering, foreclosures are low and prices are up, but investors are not selling their properties. Instead,  NBC News  says “they are buying more, and now they are buying new.” “That fruit—cheap foreclosures—offered investors a relatively low-risk play, because they could buy homes at well below the cost of replacement, and not only would they see rental revenue but also property price appreciation,”  NBC News  reporter Diana Olick noted. “As this new interest develops, however, builders are starting to offer institutional buyers bulk discounts. Not only does it help builders grow revenue, but it gets...

Concerns about the potential impact of higher interest rates have sent  real estate investment trusts on a roller coaster ride this year, after chalking up double-digit gains in 2014. Despite their recent fickle behavior, however, this asset class belongs in the diversified portfolios of long-term investors, experts say. What's more, the volatility could provide a buying opportunity. A REIT is simply a company that owns or finances income-producing real estate. Most REITs are traded on major stock exchanges, and investors can purchase a share of the REIT just as they would any other stock. One major draw of REITs is that they provide investors with a  regular income stream , as they typically pay out their taxable income as dividends to shareholders. In the low interest-rate environment that has prevailed in recent years, income investors have turned to REITs to generate potentially higher rates of return than more traditional income-generating investments, such as ...