Post
Topic
Board Economics
Re: Interested to invest in REIT
by
boonsterx
on 04/03/2018, 14:44:59 UTC
I own a portfolio of reits and business trusts for a passive income stream. My plan is to build this passive income from reits as well as business trusts up to $100,000 per year.

If you are keen in REITS, you need to pay attention to the rental market in the target area. You need to also understand which market you are interested.. office Reit, residential Reit, retail Reit, logistics Reit.. and even data center Reit.

My personal fav is logistics Reit and Data Center Reit.

Depending on the real estate Reit you are thinking of investing in, the returns can vary.

- Residential Reits tend to be lower in returns.
- Office Reits and Logistics Reits tend to cyclical depending on the economy
- Retail Reits are bad due to ecommence..

Also if it is a fund, look at their management fees... compare it to the various Reits in the same industry and make sure it is low or comparable.

Anyway REITs are good instruments as a form of income. But capital growth will not be sexy..