120: REIT vs. Homeownership; Arizona's Plans for 2023; What's Causing the Current Standstill in the Multifamily Real Estate Market??

In this episode of "Kiss My Assets," hosts Jamison Manwaring and Heather Andrews discuss various topics related to real estate investment trusts (REITs) and the current real estate market. They mention an article from AZCentral that compares homeownership with investing in REITs, coinciding with the launch of NV REIT by Neighborhood Ventures. They highlight the benefits of investing in a REIT, such as diversification, avoiding interest rates, and not having to manage a property. They also touch on the tax benefits of REITs and advise against buying rental properties as a hobby unless one has the necessary skills.

Our Team mentions a Forbes article that provides a guide for choosing a REIT, emphasizing the importance of understanding the different types of REITs, analyzing the business model, reviewing dividend history and cash flow trends, and assessing the debt ratio. Our team appreciates the simplicity and transparency of investing in apartment buildings through their own REIT and emphasizes the tax benefits associated with REITs.

The discussion moves on to the current state of the real estate market, specifically the standstill between buyers and sellers. Sellers are hesitant to lower their prices due to the memory of low-interest rates in 2021, while buyers are cautious due to high financing rates. However, we see this as an opportunity for buyers to negotiate lower prices and acquire properties at a discount. They mention the ongoing demand for buildings in high-growth areas like the Sunbelt region, particularly Phoenix, which ranks number eight among the top preferred markets according to a CBRE survey.

The two also highlight the positive economic growth in Phoenix, with a high quality of life and a diverse job market. They mention the creation of well-paying jobs in sectors that require education and trades. Additionally, they discuss exciting projects to watch in the Phoenix area, including the Taiwan Semiconductor plant, the Intel Core expansion, and the investment in electric vehicles, which will further boost the local economy and job market.

Overall, this episode provides insights into the benefits of investing in REITs, tips for choosing a REIT, and an overview of the current real estate market in Phoenix, emphasizing its growth and investment potential.