Some experienced commercial property investors and developers in Missouri may be aware that equity real estate investment trusts are popular and reliable. Those equity REITs are poised to become even more stable and popular as they are separated from the financials sector and moved into their own real estate category. It is the first time a new headline sector has been created since the creation of the Global Industry Classified Standard in 1999. Investors in financials as well as equity REIT investors are likely to be affected by the change.
Interest has been growing in equity REITs because they cost less and tend to have good returns, and this is one reason for the shift. In their own category, they may be more visible and thus even more attractive to investors. Furthermore, they will no longer be subject to the volatility of the financials sector. However, investors in mortgage REITs do not stand to benefit from the change because those will not be reclassified.
Overall, the change is expected to lead to growth in both REITs and the real estate market as a whole. For example, the new but already popular area of real estate crowdfunding may get more attention. Real estate crowdfunding offers investors with as little as just a few thousand dollars to spend to begin investing.
People who are considering real estate as a first-time investment, whether through crowdfunding or more conventional means, might want to work with an attorney. More experienced investors may also benefit from legal guidance. A number of issues can arise during the purchase or ownership of real estate, particularly for developers. Problems could range from zoning and land use disputes to complications around liens and easements.