This provides additional information or updates to our existing investment strategy. Most recent post(s):
This Bloomberg article highlights different demographic groups demand for rental property:
- The 50-60 age group is looking for easier living - avoiding the bills and work of owning a home.
- Baby boomers are entering the stage of their lifecycle when downsizing their residence often occurs.
This macroeconomic view provides the top-down perspective for our U.S. REIT investment strategy.
Medium-term Investment Strategy
- BUY/HOLD U.S. REITs with excellent cash flow and good balance sheets (lower debt to equity ratios).
Triggers for Strategy Change
- Supply of rental units begins to outstrip demand; increasing rental vacancies.
- Increases in home ownership rate.
Type: Investment Strategy Thesis
Sector: Real Estate
Sub-sector: Residential Renting & Leasing
Area(s) of Analysis: home ownership rates, rental vacancy rate, new home construction, homes sold
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Richardson GMP Limited or its affiliates. Assumptions, opinions and estimates constitute the author's judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them, having regard to their own particular circumstances. Richardson GMP Limited is a member of Canadian Investor Protection Fund. Richardson is a trade-mark of James Richardson & Sons, Limited. GMP is a registered trade-mark of GMP Securities L.P. Both used under license by Richardson GMP Limited.