60% of your portfolio in Real Estate?My investment accounts are part of a portfolio that includes pretty extensive real estate holdings, all in the mid-atlantic region, concentrated in an NNN comercial property and a vacation rental property (owned outright), which were acquired via 1031 exchange, and will likely continue to be held as real estate for the next 20 or so years (to morbidly estimate relevant lifespans). These holding account for 60% of the value of the portfolio, give or take. In this context, does it still make sense for me to invest in REITS (which cover other regions), along with equities and fixed income, or are my already overweight holdings sufficient to forgo REITS?
You do not need to add quoted REITs!
There will be a higher correlation between quoted REITs & your property portfolio, even if they cover different segments of the property market. Some of the same forces - interest rates, inflation, the real estate cycle - will apply to both your portfolio and any quoted REIT or RE fund.
A higher correlation than between your equity portfolio and your property portfolio. But there's one there, too.
Statistics: Posted by Valuethinker — Mon Nov 25, 2024 7:08 am — Replies 11 — Views 777