For those interested in a "speculative" investment, REIT's offer the opportunity to share in the profits of real estate without having the hassle of owning or managing property yourself. As you probably know, with historically low mortgage interest rates, apartment vacancies in most cities have been at historically high levels because many people could qualify for mortgages to purchase their own homes. However, now that it appears that mortgage interest rates have turned north for the forseeable future, fewer and fewer people will be able to qualify for mortgages. This in turn should increase the demand for apartments, thus increase rents, thus increase profits for companies owning and managing rental properties.
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Many apartment oriented REIT's are starting to pay 5-6% dividends on top of a potential further increase in their share price.



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