Video Update - REITs Are Firing On All Cylinders For 2025

And we're along for the ride

Author

Tim Melvin
December 18, 2024

Were you forwarded this email? Subscribe here for free.

Premium Video

Editor’s Note: Tim just released his latest Premium-exclusive weekly video covering the good things that 2025 has in store for us real estate investors. Below is a brief preview. Upgrade to Premium to access the full video and transcript!

Overall Economic Context:

  • The U.S. economy remains robust, with no significant signs of a slowdown entering 2025, despite higher-than-historical interest rates.

  • The Federal Reserve’s easing efforts are expected to be cautious, with rates staying elevated for longer due to structural resilience in the economy.

  • The U.S. has diverged significantly from Europe and Japan, driven by unique fiscal and corporate dynamics.

Key Drivers of Economic Resilience:

  1. Reduced Sensitivity to Interest Rate Hikes:

    • Unlike previous cycles, Fed rate hikes have had limited impact on household and corporate spending.

    • Over 95% of U.S. mortgages are fixed-rate, insulating households from rising interest costs. Effective mortgage rates remain at ~4% for most borrowers compared to current rates of ~7%.

    • Corporate borrowing is predominantly fixed-rate, reducing debt-servicing pressures even in a high-rate environment.

Subscribe to Premium to read the rest.

Become a paying subscriber of Premium to get access to this post and other subscriber-only content.

Already a paying subscriber? Sign In.

A subscription gets you:

  • • No ads.
  • • Access to Tim's Total Return Model Portfolio, focusing on underpriced REITs with excellent fundamentals.
  • • Access to Tim's Real Income Model Portfolio, focusing on bonds and preferred shares issued by the best REITs in the country.
  • • Access to Tim's "REIT of the Week," where Tim picks the best-priced, highest quality REIT to buy every week.
  • • Exclusive weekly video (and transcript) from Tim with his analysis of the REIT sector, the economic trends affecting real estate, and updates on the stocks in the model portfolios.