Summary
- Buying apartments at pennies on the dollar has always been a good investment.
- Today high-quality apartment REITs are priced at a deep discount to what they would be worth in the private market.
- We compare two popular options and present which one we prefer.
- Looking for a portfolio of ideas like this one? Members of High Yield Landlord get exclusive access to our model portfolio. Get started today »
Historically, it has always been a good idea to buy apartment REITs when they were priced at low valuations during times of crisis.
We will always need shelter and apartment REITs have always bounced back and outperformed most other market sectors in the long run:
Today again, apartment REITs are priced at discounted valuations and we believe that now is a great time to be a buyer. Two apartment REITs, in particular, appear to be exceptionally cheap:
They have underperformed because they focus on coastal markets, which have been hit the hardest by the COVID-19 crisis.
Data by YCharts
We give them both a “Strong Buy” rating, and in today’s article, we will answer a question that we regularly receive on our Chatboard at High Yield Landlord:
