Changes ahead for equity REITs

| Sep 2, 2016 | residential real estate

With equity real estate investment trusts moving from the financials sector to the real estate sector, Florida investors may see improved performance in their REITs. It is expected that many equity REITs will become even more profitable when separated from the volatility of the financials sector. However, not every investor will benefit. Some REITs are held in exchange-traded funds, and this could lead to a drop in dividends that may range from minor to more significant depending on how many assets are involved.

Another group of investors unlikely to see benefits are those with mortgage REITs. These are already riskier than equity REITs, and they will not be moved out of the financials sector. Therefore, they will continue to be subject to the overall volatility of the sector.

However, it is expected that interest in property investments will rise and that this will drive up overall demand for real estate. Changes in the real estate sector have already brought in new investors. For example, crowdfunding means that even with just $5,000, a person might be able to begin investing.

Investors may have a range of different needs based on their experience and the level of their investment. People who own real estate at any level may want to work with an attorney whether they are taking part in a crowdfunding offer, making sophisticated and costly investments in commercial real estate or hoping to protect property that they already own. The language of real estate agreements and industry regulations may be complex, and an attorney might be able to assist and guide an investor during the purchasing process and throughout the ownership of the property.