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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?


To: Art Bechhoefer who wrote (11383)6/27/2003 12:25:33 PM
From: Mr. SunshineRead Replies (1) | Respond to of 306849
 
<<Does this mean real estate trusts won't do as well?>>

Not necessarily. My comments were directed more toward the residential real estate and loan market. Commercial real estate may be affected, especially on the loan side, but overall not so much. Mortgage REITS may be hurt, but then again if people stop refinancing every few months it may actually help the mortgage REITS.

<<And in view of the new tax law, won't the lack of dividend tax cut on REITs make them less popular?>>

A little maybe, but not that much. The tax cut brings the rate on some dividends down to 15%, but does not eliminate it. For people in a lower tax bracket, those with REITS in a tax deferred account, those who want a steady and fairly reliable income, and those who want some diversification into real estate, REITS are still a good idea, IMO.