Rental real estate is presenting some true opportunity right now, and there is an exchange traded fund (ETF) to help you capitalize on this trend without actually buying the rental property.
iShares FTSE NAREIT Residential Real Estate Fund (REZ) is a passive method to jump on this trend and it is also cost-efficient. The fund holds companies that own, manage and/or invest in residential apartment properties.
Although the real estate sector in general has been battered, the rental market is in the process of expansion, with occupancy rates on the rise, demands increasing and rents on the upswing. The quality of tenant is going to improve as well, reports Thomas Smicklas for Grace Cheng Financial News & Opinions. In a climate where most potential homeowners are finding themselves unable to get credit, many aren poised to enter the rental market instead.
REZ is up 13.1% year-to-date.
Another advantage to owning this ETF is that real estate holdings are a good choice for income and tax advantages. Smicklas claims this to be one of the best times in 30 years to purchase existing rental real estate.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.