{"id":1024,"date":"2020-10-14T06:00:31","date_gmt":"2020-10-14T10:00:31","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1024"},"modified":"2024-04-25T23:20:28","modified_gmt":"2024-04-26T03:20:28","slug":"real-estate-stocks-and-ipos-should-you-invest","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/real-estate-stocks-and-ipos-should-you-invest\/","title":{"rendered":"Real Estate Stocks and IPOs: Should You Invest?"},"content":{"rendered":"\n
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These days, with firms allowing commission-free trading, the\nretail market for stocks and exchange-traded funds (ETFs) is brisk. Some of our\nreaders might be thinking of investing in real estate stocks. This is simpler\nthan ever to do.<\/p>\n\n\n\n

Many people have retirement funds, but don\u2019t know they allow\nfor self-directed investing. Investors can reduce their risks by leaving most\nof their funds in a professionally managed account, and self-direct their\ninvestments in a smaller account with the same brokerage. An adviser at your\nfinancial firm can tell you more about how to manage all or part of your retirement\naccount, and how to steer clear of tax triggers. The platforms of the major\ninvestment firms are now well designed to warn against common mistakes and alert\nan investor who is about to purchase particularly high-risk stocks or funds. <\/p>\n\n\n\n

Even if you opt to avoid the market or self-directed\ninvesting, current real estate investment trends, like evolving\ngenerational preferences<\/a>, have a story to tell about our economy and\nwhere it\u2019s headed. Here are some factors to watch.<\/p>\n\n\n\n\n\n\n\n

Influencers: Zillow, Redfin, and the iBuyer Trend<\/h2>\n\n\n\n

Redfin<\/a>\u2019s proprietary technology helps agents schedule their showings and communicate with customers. Its site comes up when people search for current estimates of a home\u2019s value. Site visitors are allowed to claim their own home descriptions on Redfin, and update the entries with renovations and photographs \u2014 thus continually improving the valuation data. <\/p>\n\n\n\n

Competitor Zillow offers a similar valuation feature, called the Zestimate<\/a>. Zillow is making some moves that could put the company in a strong position going into the future. It\u2019s starting a home property brokerage, Zillow Homes, to buy and sell houses through Zillow Offers. The idea is to compete with home-flipping startup Opendoor, and Redfin is getting in on the action too. More elegantly termed iBuying<\/a><\/em>, this trend has been adopted by mainstream companies, including big names like Keller Williams. <\/p>\n\n\n\n

Thinking of investing in iBuyer stocks? As with any stock,\nresearch the forecasts before deciding whether and when to jump in, and which\ncompany to back.  <\/p>\n\n\n\n

REITs and the Importance of Economic Stimulus<\/h2>\n\n\n\n

Real estate investment trusts<\/a> are popular offerings. They are designed, by law, to pass income through to investors from real estate rentals.\u00a0REITs offer a popular way to invest in retail and commercial real estate, and earn dividends. They can buy properties from a distressed market<\/a>, which 2020 certainly provided (more on this below, in our Apartment Stocks section). <\/p>\n\n\n\n

But REITs occupy a range of property types<\/a>, and they vary starkly. To take just a few examples of how this plays out:<\/p>\n\n\n\n