3 Real Estate Stocks to Buy for Terrified Investors

Motley Fool investors shouldn’t be afraid of investing in real estate if they have a long-term growth strategy, but these provide some relief.

| More on:

Real estate remains one of the most terrifying places for Motley Fool investors to consider right now. That’s both in terms of purchasing a property, and, of course, purchasing shares on the TSX today. But real estate stocks still offer some strong long-term potential.

Today, I’m going to focus in on three real estate stocks that have seen strong performances in the last few years. Further, they offer global diversification. This will allow you to see your portfolio climb back up as soon as the economy recovers.

NorthWest Healthcare REIT

First up, we have NorthWest Healthcare Properties REIT (TSX:NWH.UN). This healthcare real estate investment trust (REIT) offers you exposure to healthcare properties around the world. That portfolio includes properties from Canada and Australia to the Netherlands and now the United States. Further, it invests in office spaces, parking garages, and, of course, hospitals and other healthcare facilities.

Shares are a steal right now, trading at 6.09 times earnings. NorthWest is one of the strong real estate stocks offering growth of 10% over the last five years, even after the downturn. Yet shares are now down 12% year to date, so you can lock in a dividend yield of 6.71% at these levels!

Vanguard FTSE Canadian Capped REIT Index ETF

For those wanting Canadian growth, I would also consider Vanguard FTSE Canadian Capped REIT Index ETF (TSX:VRE). This REIT index exchange-traded fund (ETF) aims to track the broad Canadian real estate equity index, focusing on stock companies that will see strong performance.

It currently offers a yield as well at 3.05%, with shares down 24% as of writing. The ETF has come down quite a bit because of the sinking in the Canadian market surrounding interest rates and housing prices. But this does mean the company is eventually due for a recovery, and that could see new investors achieve massive growth in the years to come.

iShares Global Real Estate Index ETF

Finally, iShares Global Real Estate Index ETF (TSX:CGR) is a strong consideration for those wanting the simply global growth from real estate stocks. The company has exposure to 75 different real estate stocks located all around the world. You can get exposure to the global performance of real estate, which is due for a rebound in countries all over.

You also get a dividend yield of 1.9% from this stock, with shares down 21% as of writing. Those shares are down 5% from where they were five years ago, but up 125% in the last 12 years. So, right now, you can lock in dividends and see shares recover as we get out of this bearish market.

Foolish takeaway

If you’re a new investor, the real estate market can actually be a great place to consider. It’s merely important that you realize all stocks, real estate stocks included, go up and down. It’s hard to see, but it happens to every sector. Just look at the market now.

But the TSX today will recover, as will these stocks. And in fact, they’ll likely see a quicker recovery thank to their global exposure for investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS.

More on Stocks for Beginners

engineer at wind farm
Energy Stocks

Invest $20,000 in This Dividend Stock for $100 in Monthly Passive Income

This dividend stock has it all – a strong outlook, monthly income, and even more to consider buying today.

Read more »

stocks climbing green bull market
Stocks for Beginners

3 TSX Stocks Soaring Higher With No Signs of Slowing

Don't ignore stocks just because they look like they're at a high price. Instead, see exactly why they've driven so…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Stocks for Beginners

2 Top TSX Growth Stocks to Stash in a TFSA for Life

These two growth stocks may not be the top in the last month, but in the last few years, they…

Read more »

people relax on mountain ledge
Dividend Stocks

Invest $10,000 in This Dividend Stock for a Potential $4,781.70 in Total Returns

A dividend stock doesn't have to be risky, or without growth. And in the case of this one, the growth…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn a $15,000 TFSA Into $171,000

$15,000 may not seem like a lot, but over time that amount can balloon into serious cash.

Read more »

A worker uses a double monitor computer screen in an office.
Stocks for Beginners

Why I’d Buy Fairfax Financial Stock Even at Today’s Prices

Fairfax stock just keeps edging higher. But is it now too expensive, or can investors just look forward to even…

Read more »