๐ Maple Market Challenge 14: Rate cut but REITs up?
Hi, mooers!
Welcome back to Maple Market Challenge!
Like always, let's reveal the answer to last week's quiz: Which segment of Intel is planning to spin off into an independent subsidiary? The answer is "Intel Foundry Business".
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92% mooers chose the correct answer! A big round of applause to those who got it right! Each of you will receive 20 points. Plus, we're giving 50 points to everyone who left a comment. Well done, everyone! A private message with more details will be sent to you shortly.
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Now, brace yourselves for today's quiz!
For Canadian investors, real estate investment trusts (REITs) are making a comeback in 2024 as rising interest rates begin to stabilize. With interest rates easing, REITs are once again becoming appealing, offering steady income and the potential for capital appreciation. REITs have surged by 10% to 25% over the past few months. The S&P/TSX Capped REIT Index has risen over 18% since the first rate cut on June 5th. REITs provide diversification through real estate investments, making them an excellent way to build long-term passive income, especially as the real estate market starts to rebound. Letโs explore some solid options.
1. Is it good timing to invest in REITs now?
2. Is this a good time to buy a home in Canada?
Stick around for the reveal of the answers and to celebrate our winners. Good luck to everyone! ![]()
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102362254 : Investing in REITs can be a smart move, especially with low interest rates and a recovering real estate market. Favorable rates keep borrowing costs down, boosting property values and rental incomes. As demand for commercial and residential properties rises, REITs become even more profitable, offering a good opportunity for steady income and long-term growth.
Living Stone : It probably would have been a good idea to invest in REITs a few months ago before the surge because now your investment is worth more (the graph is after the fact). I guess the question now is are they going to continue to surge after the rate cut.
According to reit.com, two impacts of lower rates on REITs are reduced refinancing costs and improved cost of capital which will lead to higher dividends and future earnings. So it is still probably a good time for REITs. Wait for a dip perhaps?
Bobbyjee : my initial invest journey started with REITsnd accumulated almost all of the indicated above stocks. my investment goal always is to earn passive income and growth, REITS are an excellent source to both.
buying a house could be a better choice as rate cuts will increase market value
Bobbyjee Living Stone : they will, it is written on the wall
COCO 2024 : I just started building a REIT position, there is a chance to continue adding positions.
Buying a house may be a better choice because a rate cut will increase market value.
Now I'm not sure if I should wait a little longer to buy a house, many people are still waiting and watching.
72898169 : Wait for a suitable callback to buy.
vitalymezh : buying more REIT today
73586925 : 1. Yes it is, when the stock price is still low. At some point the price will start going up.
2. I will wait a little longer for the interest rates to continue coming down
JimmyTeo : Keep buying.
73279472 : l
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