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Ecacophonic Junior Member
Joined: 02 Jun 2007 Posts: 1
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Posted: Sat Jun 02, 2007 8:02 am Post subject: Is Investing in REITs a Good Idea? |
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Though I do a fair amount of reading of the real estate market, I must admit that I don't keep in touch with domains such as real estate investment trusts. I understand the REITs (as they are called) could be a very useful addition to one's portfolio, especially for those folks who wish to invest in real estate but are not actually keen on owning a house or real estate! What are the views of the members?
I also read that due to favorable tax laws, REITs generally pay large dividends which appeal to investors looking for income and stability. And because REITs generally do not own single-family homes, they usually do not move in lockstep with the rest of the housing market or the stock market, and so if owns REITs and S&P stocks, when one zigs while the other zags, making the portfolio more balanced.
Now the above is what I read...it will be quite useful to know the feedback from the members if they have had experience investing in REITs..
Thanks for your time
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youbetcha1018 Junior Member
Joined: 06 Nov 2008 Posts: 33
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Posted: Thu Nov 20, 2008 12:50 pm Post subject: |
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Well, typically they provide high dividends plus the potential for moderate, long-term capital appreciation. And long-term total returns of REIT stocks are likely to be somewhat less than the returns of high-growth stocks and somewhat more than the returns of bonds. Because most REITs have a small-to-medium equity market capitalization, their returns should be comparable to other small to mid-sized companies. They are also attractive additions to investment portfolios because there is a relatively low correlation between REIT and publicly traded real estate stock returns and the returns of other market sectors. Including REITs in your investment program helps build a diversified portfolio. So I can say, yes. _________________ Miami Real Estate |
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