The thing with the housing market is; as the baby boomers retire and go to those assisted living places, the new generation being paid a fraction of what they need to own a house and raise a family, the Hispanics picking tomatos, shit, nursing homes are the only housing investments I want.
"Better late than never"http://articles.moneycentral.msn.com/Investing/CompanyFocus/TapHiddenValueInNursingHomeStocks.aspxBoomers and buyers Two other trends are set to help elder-care companies. First, the number of Americans who are 65 or older will increase from 37 million in 2005 to 40 million in 2010, and 47 million in 2015, says the U.S. Census Bureau. After 65, they will have more of the health problems that put people in nursing homes for short and long stays. Another favorable factor is that this country's 1.7 million nursing-home beds are offered by 16,000 facilities, according to the American Health Care Association. In such a fragmented industry, the bigger publicly traded players can grow through acquisitions.
I'd give it 5 years or less. Consumer spending is up. The economy is bouncing back. Job creation has started. Companies wil be expanding again. Commercial realestate vacancies will decrease. Reit companies will raise dividends. It wouldn't take much for NRO to be at $10 a share with a 4% yield. (app. 3.3 cents per month distribution) Remember NRO paid out 15 cents/month back in the good ol days. Residential realestate will be slow in recovery as I think it should as it was getting way out of hand and no one could afford a house. NRO has very little exposure in this area though.
Time frame? 10 years out, perhaps. This is both an interest and a nav appreciation play right now. At some point real estate will be back fully. At that point, sure. Until then, accumulate. Buy on dips. Interest on this and NRI is still pretty decent.