A Top REIT to Defend Against Inflation
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Inflation can be a tough beast that’s hard to tame. Many beginner investors haven’t had to grapple with it, given problematic inflation has laid dormant for decades.
Market participants are divided into two camps these days: those who believe the recent bout of +3% inflation will be transitory, and those bracing themselves for inflation to hit a “new normal.” Investors don’t need to pick a side, though. In fact, I’d argue it’s far wiser to prepare for both scenarios.
Recent inflation headlines can be pretty scary. And while an inflationary environment can take a toll on stock returns, with a concentration of the damage done to growth stocks, I’d discourage investors from trying to predict what inflation or rates will do next. Unexpected inflation poses a major risk to stock investors right now. But if it turns out the Fed was right, and inflation is transitory (there�
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Should property investors invest in real estate investment trusts (REITs) rather than buy rental properties in 2021? The Canada Mortgage & Housing Corporation projects home sales this year to be 602,000, although economists warn of a housing market bubble.
Prices rose by as much as 30% and hit record highs in 2020. The financial system’s exposure to the mortgage market is double compared to the U.S. However, any downturn could be disastrous to Canada’s economy.
For this reason, REITs are better investment alternatives than purchasing physical properties. The cash outlay is more affordable, yet would-be investors still earn income like a real landlord. Similarly, you avoid an impending bubble burst that could send prices plunging dramatically.
Revealed: The Best Canadian REIT Is Under the Radar
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Let’s take a tour around some of the most prominent Canadian real estate investment trusts (REITs) before we reveal the best Canadian REIT that’s under the radar from the investing community!
Retail REITs
Before retail REIT giant
RioCan REIT cut its cash distribution by a third this year, it was a top candidate for the best Canadian REIT.
Smaller peer
SmartCentres REIT looks brighter. It has maintained its cash distribution through the economic disruptions caused by the novel coronavirus pandemic. Currently, SmartCentres provides a yield of 6.4% that appears to be sustainable with a payout ratio of close to 89%.
Abstract
Purpose: This paper addresses the current lack of solar photovoltaic (PV) adoption by Australian apartment dwellers by proposing a conceptual model that identifies and integrates the factors influencing owners attitudes towards PV adoption. Design/methodology/approach: The conceptual model, which this paper terms the apartment-based solar adoption (ASA) model, is developed by applying motivation–opportunity–ability (MOA) theory to relevant findings in property development, green energy and strata governance literature. Findings: The ASA model demonstrates the process by which an apartment-owning consumer may progress from considering solar PV adoption to recommending the action to their strata property s Owners Committee (OC). It incorporates three motivational drivers (pragmatic considerations, perceived values and perceived social norms), three conditional mediators (location accessibility, resource availability and decision-making conditions) and three requirements
Easy Landlord: Add Real Estate to Your Portfolio for Just $100
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Housing is almost a national sport in Canada. If you’re not a homeowner or investor yet, it’s something you probably think about a lot. Unfortunately, the price of entry onto the property ladder is at a record high. The real estate sector has never been this hot before.
Canada’s post-COVID economic recovery, coupled with income and population growth are driving the sector higher. This means real estate is one of the key financial engines of our economy and must be part of your portfolio. Luckily, there’s a way to add exposure with relatively little upfront capital.