Real Estate Risks and Rewards

Historically, REITs have generated total returns that have kept pace with the broader stock markets over the long term with less volatility. However, there are a number of risks that you should keep in mind when investing in REITs. Property values may fall due to increasing vacancies or declining rents during difficult real estate market periods. Many REITs finance their activities by borrowing or issuing debt, a practice that can increase investment risk, especially during periods of rising interest rates. In addition, REITs are subject to general market risk associated with any type of stock.

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The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.

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