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Where would be a good place to start on looking into REITs? Looking to diversify some savings and would like to know where or what to look into to make the step.
I look at what currency the REIT's operate under. I look at who their customers are, the dividend yield, the management team, the amount their dividend yield increases.
Some companies I invest in basically keep their dividends the same while share price fluctuates. I had picked up some Canadian REIT's in 09 with dividend yields in the 20-30% range.
One in particular was Whiterock REIT. I also purchased Artis, Calloway, and Riocan. They have a very robust customer base (walmart, grocery stores, federal/state buildings). I piled into those and averaged about 20% yields. I went on margin to do this and netted the difference. Whiterock was eventually bought out by Dundee REIT.
Just remember, interest rates will effect the price of these stocks. when rates go up, stocks go down, because the so called "risk free" interest goes up, and stocks will get discounted more because they have risk. They are basically inversely proportional.
Buy anything when it is dirt cheap.
so, look at currency, valuation, when their debt comes due, who they rent to, dividend yield, etc.
Where would be a good place to start on looking into REITs? Looking to diversify some savings and would like to know where or what to look into to make the step.
This is one area of the market where I say it's better to just buy the index. Vanguard REIT index charges only .25%. If you invest 10K, they only charge .10%. It's tough to beat the index in this category and this is also a fund category that charges higher than average expense ratios.
I personally have Third Avenue Real Estate (TAREX). I like it because it can invest globally and it is not as volatile as the REIT index...but it has not performed better. I am lucky that I got into the "cheap" Institutional shares before they created a "new" rip off share class that charges 1.34%...but even the "cheap" share class charges 1.09%, but it how takes 100K to get into the cheaper share class (used to be just 1K). If I had to do it all over again, I would've just bought the REIT index.
I don't recommend individual stocks. It takes too much time to do good research. Too much can go wrong. Too many people don't have the temperament for it.
Where would be a good place to start on looking into REITs? Looking to diversify some savings and would like to know where or what to look into to make the step.
Where would be a good place to start on looking into REITs? Looking to diversify some savings and would like to know where or what to look into to make the step.
I know this probably isn't the answer you're looking for, but what's wrong with Vanguard REIT index (VGSIX)?
First thing to know is there are property REITS and Mortgage REITS and they are very different animals. The property REITS I've been invested in the last couple years have been very good investments.
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