adplus-dvertising
Connect with us

Real eState

Why these Lipper Award-winning fund managers think you need more real estate in your portfolio

Published

 on

 

REITs have fared worse than the overall market during this year’s market downturn and are now trading roughly at a 20 per cent to 25 per cent discount to their net asset values.DARRYL DYCK/The Canadian Press

Canadian investors wanting to boost their real estate holdings should look to the country’s pension plans for a rough guide on how much of this asset class to own, says Michael Nairne, president and chief investment officer of Tacita Capital of Toronto.

“Pension plans have been adding real estate for years because they face what the average Canadian faces, which is a retirement funding challenge,” says Mr. Nairne, who manages the Lipper Award-winning TCI Premia Real Assets Private Pool fund. “Real estate offers an ability to build contracted cash flows that increase over time.”

Mr. Nairne explains that large pension operators have relied on their growing real estate holdings to provide much of the income that fixed income, such as bonds, used to provide. Pension providers currently hold roughly 10 per cent to 15 per cent real estate in their portfolios, Mr. Nairne says, and he believes individual investors would be wise to mirror that strategy.

300x250x1

Tacita Capital’s fund can take positions in individual real estate companies, real estate investment trusts (REIT) and exchange-traded funds (ETFs) that hold an array of REITs. Mr. Nairne believes ETFs may be the easiest option for individual investors seeking low-cost, diversified exposure to the real estate sector

He says his fund offers potentially higher returns versus ETFs by overweighting particular companies and strategies.

The fund is down 13.6 per cent this year to Nov. 4 and returned nearly 32 per cent in 2021.

REITs have fared worse than the overall market during this year’s market downturn and are now trading roughly at a 20 per cent to 25 per cent discount to their net asset values.

“It’s a good time to enter” the sector, Mr. Nairne says, predicting the discount will disappear when market sentiment improves, and investors look to potentially hold their positions long term. REITs trade like a security over the short term, he says, and deliver benefits of real estate investments over the mid-to-long term.

Even with a long-term view, investors need to consider what’s happening in the broader economy, including cultural and workplace trends. For example, during the pandemic, office and traditional retail real estate valuations suffered while industrial real estate boomed alongside online shopping.

With remote and hybrid work the new norm, the office sector could face a tough future, says Steve Buller, a Boston-based portfolio manager with Fidelity Investments, who manages the Lipper Award-winning Fidelity Global Real Estate Fund. The Series F version of the fund is down nearly 24 per cent year to date as of Nov. 8 after rising 27 per cent last year. It made large annual gains most of the past decade.

The fund was recognized for its 10-year performance, starting with the hangover from the global financial crisis through a strong period for real estate and the pandemic. He and other portfolio managers are now navigating the choppy period of rising rates, inflation, and recession risks.

“Right now, we are more in what I call a balanced approach between sectors that are risk-off, growth [and] work from home. On the other side, risk-on value or reopening trade,” he says.

He says the less-risky side includes logistics, apartments, manufactured housing, data centres, and single-family rental. His focus includes non-mall retail, health care (in particular assisted living facilities), hotels and gaming REITs, a U.S.-only investment class.

Mr. Buller has been underweight office and retail real estate over the past decade, which has proven to be a good strategy.

“People forget office wasn’t a great business prior to the pandemic,” he says, adding the U.S. office market was suffering from a major supply glut even before COVID-19 hit, while retail has been slowly suffering from the shift to e-commerce shopping.

More exposure to hotels may seem risky given shaky economies in much of the western world; however, the Fidelity manager believes pent-up demand for both business and leisure travel will boost demand.

He says any stabilization of interest rates will signal stability in the sector, giving lenders, buyers and builders more certainty about spending their capital.

“Fundamentals and valuation are good or positive; it’s the capital side that is negative or the question mark … that’s pulling the performance down,” he says.

REITs are attractive at their bargain status and could appeal to investors with a strong stomach for volatility. Certain subsectors may also be more attractive than others.

Dean Orrico, president and chief executive officer of Middlefield Capital Corp. of Toronto, notes that industrial REITs have been among the hardest hit, down about 40 per cent so far this year, and may be oversold.

He notes many landlords are renewing leases at rates that are in line with inflation, which bodes well for future profits.

“As long as you have a good tenant base, and we are not seeing any cracks in that, so we think we are in good shape,” says Mr. Orrico, whose Middlefield Global Real Estate Dividend Class fund was a 2022 Lipper Award winner for five-year performance.

His fund’s winning strategy uses REITs to own 30 to 40 mainly Canadian real estate companies (with some U.S. and European firms), with strong fundamentals such as industrial, apartment and open-air, necessity retail centres.

The fund is down 24 per cent so far this year, as of Nov. 8 and gained more than 36 per cent in 2021.

Mr. Orrico believes many REITs are priced as though investors expect a recession as deep as the 2008-2009 global financial crisis, a view he doesn’t share. He points out that industrial rents fell about 25 per cent during the global financial crisis, while industrial firms are currently renewing leases about 20 per cent higher due to high demand.

Like other investors in the sector, Mr. Orrico sees real estate as a proven inflation hedge and an asset class that should be a part of most investor portfolios. Now is also a good opportunity to buy.

“[REITs] are down too much, and I think it represents great value,” Mr. Orrico concludes.

Source link

Continue Reading

Real eState

Botched home sale costs Winnipeg man his right to sell real estate in Manitoba – CBC.ca

Published

 on


A Winnipeg man’s registration as a real estate salesman has been cancelled after a family vacated their home on a tight deadline for a sale that never went through, then changed brokerages and, months later, got $60,000 less for their house than what they expected when they moved out.

A Manitoba Securities Commission panel found Reginald Wayne Kehler engaged in professional misconduct and conduct unbecoming a registrant when he signed a document on behalf of sellers without their knowledge, reduced the listing price of a home without their approval, and didn’t tell them for nearly a month that a potential buyer hadn’t paid a promised $100,000 deposit.

The sellers, identified as D.R. and P.R. in the panel decision released Wednesday, were awarded $10,394 from the real estate reimbursement fund. Kehler was ordered to pay $12,075 to cover costs of the investigation and hearing.

300x250x1

The sellers were a military family who had to move in 2020 after the husband was posted to Ottawa.

They chose Kehler as their listing agent, because he had helped them find the home when they moved to Winnipeg in 2018, and they had a good relationship with him, the panel’s decision says.

They  listed their house in May and on June 15, 2020, accepted an offer of $570,000 with possession on July 15. A deposit of $100,000 was to be paid within 72 hours of acceptance of the offer.

Kehler was the salesperson for both the buyer and the sellers — but the sellers say he never told them that.

A form that indicated the sellers knew he was also representing the buyer, dated June 15, 2020, was filed.

While it appeared to be signed with the sellers’ names, they said they didn’t see it until March 2021. One of the two wasn’t even in Winnipeg on June 15.

“Kehler, in his interview with commission staff, acknowledges that the sellers never signed this document — we note that the purported signatures on the form look nothing like the actual signatures of the sellers on other documents,” the decision says.

Kehler told commission staff he’d been authorized to sign on the sellers’ behalf, which they denied. The panel found them more believable.

Once the deal was made, the sellers, believing they had just a month before the buyer would take possession of their home, quickly packed up and prepared to move with their two young children.

Buyer never made deposit

Meanwhile, the buyer hadn’t made the $100,000 deposit before the deadline — but Kehler didn’t tell the sellers.

Kehler told commission staff that was because he thought the deposit was still coming, and he didn’t want to cause more stress for the sellers.

On July 10, just five days before the buyer was to take possession and the day before the family was leaving Winnipeg, the sellers spoke to Kehler — but he still didn’t tell them the deposit hadn’t been paid.

Kehler “said everything was fine,” according to the decision.

It wasn’t until the evening of July 13, when the family arrived in Toronto on their way to Ottawa and just 36 hours before the scheduled closing, that Kehler told them he’d never received the deposit.

Eventually, they received $4,000 of the deposit, but the sale of the house never closed. The sellers scrambled to extend the insurance on their old home and make sure they continued to pay the utility bills, the decision says.

Home relisted

Kehler then recommended they relist the home, and it went back on the market at $574,900.

On Aug. 10, 2020, Kehler recommended the price be reduced to $569,900. Instead, the seller said he should reduce the price to $567,900.

But when the seller looked at the online listing on Aug. 22, it was listed at $564,900.

The sellers also asked Kehler about maintaining the property, since they were no longer in Winnipeg. He agreed he would, but friends ended up going and mowing the lawn, the decision says.

The sellers asked Kehler and his brokerage about what could be done to “make things right,” the decision says, but they never received any responses.

On Sept. 5, they hired a new brokerage to sell the home. Under the new real estate salesman, they accepted an offer on Dec. 13, and closed the deal Jan. 2, 2021, receiving $507,500 for the home.

Kehler’s actions were “contrary to the best interests of the public” and undermined “public confidence in the real estate industry,” the decision says.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Real eState

Dr. Phil left speechless after real estate agent claims that squatting is justified by colonization – New York Post

Published

 on


Dr. Phil spoke with property owners about how squatters are using legal loopholes to occupy properties, but one real estate agent argued it can be justified because of a history of “colonization.”

Wednesday’s episode of “Dr. Phil Primetime” featured one guest named Kristine, a real estate agent who “doesn’t think adverse possession is immoral,” but believes that “people with no housing dying from the elements is immoral.” According to the Legal Information Institute, adverse possession is where a “person in possession of land owned by someone else may acquire valid title to it, so long as certain requirements are met, and the adverse possessor is in possession for a sufficient period of time.” The requirements and period of time vary by state and city.

In her introduction on the show, Kristine argued that there are “multi-million dollar projects, and they’re just abandoned.” She added that she believes the land of those abandoned projects can be reclaimed.

300x250x1

She also noted she is working with a client who is “trying to occupy a property” that’s around 300 or 500 acres.

“It’s something that’s so large that you wouldn’t even notice what 2 acres is compared to how many acres are on there,” she said. “Adverse possession is a law that’s left over from both Spanish and English colonization, it is how they took the land from the native people, and it’s a process we can use to take that land back.”


Dr. Phil
Dr. Phil’s guest explained that adverse possession is a law that’s left over from colonization. Youtube/Merit Street Media

“You said that if I’ve got 100 acres or 1,000 acres and somebody goes and gets in a corner of it and adversely possesses 5 acres of it, I’m not gonna miss it, I’ve got 1,000 acres anyway?” Dr. Phil asked Kristine.

“Well, yeah,” she responded. “Can you tell me, if you’re looking at 1,000 acres, could you tell me what 5 acres was?”

Dr. Phil’s jaw dropped, and he said, “Hell yes.”


Real estate agent Kristine
The real estate agent asked Dr. Phil he could pick 5 acres out of 1000. Youtube/Merit Street Media

A landlord named Tony argued with Kristine about how she believes the manner in which people inherit property should be taken into account when it comes to adverse possession.

“We’re not in 1776, we’re in 2024,” Tony said, sparking a wave of applause from the audience.

“Do you think that a corporation that makes over a billion dollars a year is injured by someone taking 5 acres of land?,” Kristine argued.

Another guest quickly interjected with “somebody is.”

Another guest named Patti confronted Kristine by arguing she does not use her car 24-hours-a-day.

“Playing out your scenario, then theoretically anyone on the street should be able to boost your car and drive it, because that car is just sitting around unused,” Patti said, sparking applause from the audience.

“I don’t have a billion-dollar net worth,” Kristine argued, which made Barry ask if having a billion dollars is where Kristine draws the line.

Dr. Phil concluded the episode by commending Kristine for her willingness to defend her beliefs, but said he “100%” disagreed with her.

“It is a lawful thing to do if you do it in the right way, I 100% disagree with your philosophy, but your facts are correct,” he said. “She’s not suggesting people go squat in someone’s home when they go on vacation, she’s talking about something completely different, at another level, and if you’re not a billionaire, she isn’t targeting you.”

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Real eState

Botched home sale costs Winnipeg man his right to sell real estate in Manitoba – CBC.ca

Published

 on


A Winnipeg man’s registration as a real estate salesman has been cancelled after a family vacated their home on a tight deadline for a sale that never went through, then changed brokerages and, months later, got $60,000 less for their house than what they expected when they moved out.

A Manitoba Securities Commission panel found Reginald Wayne Kehler engaged in professional misconduct and conduct unbecoming a registrant when he signed a document on behalf of sellers without their knowledge, reduced the listing price of a home without their approval, and didn’t tell them for nearly a month that a potential buyer hadn’t paid a promised $100,000 deposit.

The sellers, identified as D.R. and P.R. in the panel decision released Wednesday, were awarded $10,394 from the real estate reimbursement fund. Kehler was ordered to pay $12,075 to cover costs of the investigation and hearing.

300x250x1

The sellers were a military family who had to move in 2020 after the husband was posted to Ottawa.

They chose Kehler as their listing agent, because he had helped them find the home when they moved to Winnipeg in 2018, and they had a good relationship with him, the panel’s decision says.

They  listed their house in May and on June 15, 2020, accepted an offer of $570,000 with possession on July 15. A deposit of $100,000 was to be paid within 72 hours of acceptance of the offer.

Kehler was the salesperson for both the buyer and the sellers — but the sellers say he never told them that.

A form that indicated the sellers knew he was also representing the buyer, dated June 15, 2020, was filed.

While it appeared to be signed with the sellers’ names, they said they didn’t see it until March 2021. One of the two wasn’t even in Winnipeg on June 15.

“Kehler, in his interview with commission staff, acknowledges that the sellers never signed this document — we note that the purported signatures on the form look nothing like the actual signatures of the sellers on other documents,” the decision says.

Kehler told commission staff he’d been authorized to sign on the sellers’ behalf, which they denied. The panel found them more believable.

Once the deal was made, the sellers, believing they had just a month before the buyer would take possession of their home, quickly packed up and prepared to move with their two young children.

Buyer never made deposit

Meanwhile, the buyer hadn’t made the $100,000 deposit before the deadline — but Kehler didn’t tell the sellers.

Kehler told commission staff that was because he thought the deposit was still coming, and he didn’t want to cause more stress for the sellers.

On July 10, just five days before the buyer was to take possession and the day before the family was leaving Winnipeg, the sellers spoke to Kehler — but he still didn’t tell them the deposit hadn’t been paid.

Kehler “said everything was fine,” according to the decision.

It wasn’t until the evening of July 13, when the family arrived in Toronto on their way to Ottawa and just 36 hours before the scheduled closing, that Kehler told them he’d never received the deposit.

Eventually, they received $4,000 of the deposit, but the sale of the house never closed. The sellers scrambled to extend the insurance on their old home and make sure they continued to pay the utility bills, the decision says.

Home relisted

Kehler then recommended they relist the home, and it went back on the market at $574,900.

On Aug. 10, 2020, Kehler recommended the price be reduced to $569,900. Instead, the seller said he should reduce the price to $567,900.

But when the seller looked at the online listing on Aug. 22, it was listed at $564,900.

The sellers also asked Kehler about maintaining the property, since they were no longer in Winnipeg. He agreed he would, but friends ended up going and mowing the lawn, the decision says.

The sellers asked Kehler and his brokerage about what could be done to “make things right,” the decision says, but they never received any responses.

On Sept. 5, they hired a new brokerage to sell the home. Under the new real estate salesman, they accepted an offer on Dec. 13, and closed the deal Jan. 2, 2021, receiving $507,500 for the home.

Kehler’s actions were “contrary to the best interests of the public” and undermined “public confidence in the real estate industry,” the decision says.

Adblock test (Why?)

728x90x4

Source link

Continue Reading

Trending