How to Reap Rewards Through Casino Real Estate Investments?
A casual gamer is always looking to have fun, and test their luck. Luckily there are plenty of platforms out there where they can play. Those who live in Czechia have access to some of the best operators that come from different corners of the world. It is even easy to find these reputable sites by checking casino cz online rankings and reviews. This way you get a neat overview of the available promotions. Players also have insight into other important aspects of the site.
If one is a professional gambler, they are on the lookout for opportunities. These opportunities aren’t always on a poker or blackjack table, sometimes they appear on a stock market. Furthermore, playing on online casino poker sites can sharpen your instincts for identifying good deals. And right now is possibly an ideal move to invest in casino real estate. Here we will discuss why investing in this section of the real estate market is a judicious decision
Casino vs Regular REITs
Due to the current economic crisis, the world is poised for a recession in 2023. As expected the interest rates continue to rise, and whenever this happens the real estate sector suffers a big blow. However, real estate investment trusts or REITs seem to be an anomaly, as they are resistant to this pressure.
Not only are they not sagging, but they also appear to thrive in this environment. If you examine the VICI Properties and Gaming and Leisure Properties for the past 6 months you will notice an upward trend. VICI is the largest landowner on the Las Vegas Strip and GLPI mostly owns regional gambling establishments. These are the two publicly traded REITs and they indicated that casino real estate is generating positive returns.
Gambling REITs Provide Quality Inflation Protection
You must have noticed that inflation has been out of control all over the world. This makes it difficult to save money, as just keeping it around will make it lose value. During crises like these people often turn to the real-estate sector, as a safe choice for investment. Unfortunately, things are different this time around.
Casino real estate investments seem to be one of the only solutions for inflation-hedge assets. This is because VICI and GLPI are triple-net REITs, and their lease terms are significantly longer compared to other deals in the real estate space. That being said, these triple-net REITs do have an Achilles heel, as they are more vulnerable to the rising interest rate. Luckily, the main concern for investors now is to fight inflation, and these two companies are a perfect weapon.
How to Invest in Property Market
There are 4 main ways to invest in the property market, which means you definitely have options. Of course, not all of them will be applicable to this situation.
1. Buying and selling property
2. REITs investing
3. Bonds and loans
4. Peer-to-peer lending
Clearly, these are massive land lots and establishments so, casual investors can’t buy them. This is why we mainly focused on REITs as this is the ideal way for you to reap the benefits of casino real estate. You don’t even have to be an expert in the field, since investing in REITs implies you have a manager of funds. These are equity REITs and they are all about managing the establishments that generate income.
Of course, there will always be risks involved. So if you don’t feel like investing, you can always lend the money to someone who is interested. Through peer-to-peer lending, you can find REIT investors and have an agreement with them. This will likely reduce potential returns, but it also means the risk is lower for you.
Going back to our original example, both VICI and GLPI are publicly traded and regulated by the U.S. Securities and Exchange Commission. So, it would be wise to purchase these through a broker or a financial advisor. As stated, VICI and GLPI had a positive cash flow, so advisors are likely to recommend these two.
Things to Consider
It’s worth pointing out that we only focused on two hot REITs, while there are hundreds of casino real estate opportunities around the globe. So, let’s say that you wish to make some investments in your local market. What are the things you need to consider?
The first thing to do is review the financial statements. These documents are publicly available, and a very important piece of the puzzle. Of course, if you find this due diligence time-consuming then you should hire a financial advisor, who has already done his or her homework. The idea is that you will get a better idea of how these institutions operate and see if they have been growing in the past few years.
Another important factor is local gambling regulations and general history. Has gambling been legal for the past decade or was it made legal recently? Are they tightly regulated or are laws not strictly enforced? Typically, the gambling sector booms for a few first years, but eventually they reach a plateau. Additionally, if regulators are starting to tighten their grip, this will likely reflect poorly until the institutions adjust to the new program.
Finally, find out whether the gambling sector plays an important role in the local economy. If so, big institutions will likely receive support even during the crisis. Maybe they are an integral part of tourism and have diverse revenue streams. If your town gets a lot of tourists, then investing in casino real estate is once again a good idea.
Conclusion
To conclude, VICI and GLPI REITs are thriving considering current circumstances. But, the situation in other markets isn’t necessarily the same. Hopefully, you learned something beneficial, and are now inspired to look into casino real estate stocks. In general, this is an industry that is backed by big investors, so it’s been performing well for the past decade. Moreover, it is one of the few stable investments for those who wish to cushion the impact of inflation.
You May Also Enjoy
Exploring the Regional Differences in the UK Housing Market
Breaking Property News – 13/05/24
Renting vs. Buying: Making Informed Decisions in the UK Property Market
Instant Property Valuation: A Game-Changer in the Fast-Paced Real Estate Market
Breaking Property News – 10/05/24
