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I do NOT want this to be a discussion of the merits of real estate as an investment but rather about where yields are better for an all cash purchaser . In ny Ive obtained around 5% or 4.5% but that was last year and prices are up and no inventory left in Williamsburg area where i invested and that was above the norm in ny i realize.
Anyway, i want to purchase elsewhere not have more exposure in ny. Looking in medium sized cities in mid Atlantic for condos -- and I've Justin started to look -- it's not much better than NYC . A friend looking in Miami is looking at a couple places that are below 5%. Anyone suggest a market where yields are higher for a cash purchase? (obviously a relevant issue is the price outlook,risk factors of that market).
There're quite a few REIT ETFs returning more than that, so you could see where the REITs are investing. Or do it the easy way and just buy the ETFs.
Ive been earning 15-20% in mtge reits , agnc nly
This doesn't answer your question but...
By cash purchase you mean unlevered yield?
And what do you mean by yield? A snap-shot in time when the unit is occupied? Otherwise, think impossible to say unless buying several units at a time to smooth out costs+revenue losses.
>Brooks2 - are these mortgage reits the equivalent of junk bonds? How can you possibly be getting 15@ returns with mortgage rates so low?
I told u the symbols, look them up your self. Thought that was pretty simple. They only buy agency( ins by fnmae or freddie mac)mortgages but yes they do lever. Yes they do pay-out high dividends 14-18% yield.
Yes I have owned some foe years.
Wait their stock price have rallied a bit of late so now I am only getting 13-16% divi yield. That stinks huh
If u want one that buys distressed loans try pmt that ones been a loser for me too.
If u want one that is diversified try mfa. It buys distressed securities and ins. ones. And if you want to sell you can do so by pressing a button pretty liquid.
And the best part......... You can do all this without a RE broker.
caonima, keep up with yourself.