Thanks to the wonders of compound interest, anyone can grow a relatively modest investment into a million-dollar nest egg over time. For example, investing $300 a month into stocks delivering a 10% average annual return would grow into $1 million in about 35 years. You can potentially become a millionaire faster by either investing more money or making a higher-returning investment.
Real estate tends to be a cyclical sector. As the economy slows, demand for real estate typically cools off, weighing on property values and rental rates. Because of that, real estate investment trusts (REITs) focused on these property types could continue thriving even if the economy enters a downturn in this year.
This is good news for some apartment real estate investment trusts (REITs), especially Equity Residential (NYSE: EQR), which specializes in luxury urban apartments. Equity Residential specializes in luxury rentals for young, affluent tenants in select urban areas. Equity Residential recently reported its second-quarter earnings.