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| amaw |
 Posted: Sun Feb 12, 2006 9:48 pm Post subject: How to invest in REIT's |
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How does one go about investing in a real estate investment trust? Just buy stock in that REIT through the nyse?
any ideas? |
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| waltman |
| Posted: Mon Apr 24, 2006 11:06 am Post subject: |
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Investing Sr. Associate
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There are 4 exchange-traded funds that invest in REITs--
Basically just buy the stock symbol you see in () below:
iShares Dow Jones US Real Estate Index -- (IYR)
Dow Jones Wilshire REIT Index -- (RWR )
Cohen & Steers Realty Majors Index -- (ICF)
Vanguard REIT VIPER (VNQ)
You can do a little research to find out what each one buys exactly, and what their expense rations are. I've had the Cohen and Steers one for a while - no complaints, but if I buy another I might get the Vanguard one just to mix it up. FWIW I usually aim for 5-10% of my retirment money in Real Estate REITs.
Bear in mind that REIT prices are way up over the last 5 years-- you might be getting in just as the bubble bursts.... of course it could also continue like this for another 5 years.
Here was a recent article on the housing bubble bursting on MSN:
http://moneycentral.msn.com/content/P149596.asp |
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| efflandt |
| Posted: Mon Apr 24, 2006 5:49 pm Post subject: |
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You can buy a REIT through any broker (not nyse or other exchange directly). I bought one a few days ago for 25.80 (26.02 close today) that announced an increased 72 cent quarterly dividend payable 5/15 (4/27 is ex-div date). So for 200 shares I get back $144 in less than a month. Not a big price mover, but roughly 11% dividend is not a bad place to park some IRA money that has only been making 4.5% for the past 20 yrs.
But I wonder about some of them that pay less than half that dividend at the rate of over 200% of earnings. |
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| waltman |
| Posted: Thu Apr 27, 2006 5:06 am Post subject: |
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Investing Sr. Associate
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BTW - Cohen & Steers Realty (CSRSX), Vanguard REIT Index (VGSIX) and Vanguard REIT Index VIPERs (VNQ) are all on the "Money Magazine Money65" which is a list of their 65 recommended mutual funds.
The two Vanguard funds (VGSIX and VNQ) have expense ratios of a very low 0.21 and .18 respectively! CSRSX has a 1.01% ratio - but had slightly better returns in the last year (40% vs 36.6%) versus the VGSIX REIT Index fund.
I doubt you'll see those kind of numbers next year, but a REIT is a good way to balance your portfolio... |
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| card2u |
| Posted: Tue Aug 08, 2006 2:00 pm Post subject: |
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Investing Sr. Associate
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| REITs work out to be a good income type stock in most cases . With interest rates going up and home buying starting to cool more people will rent from properties owned by companys in most good REITs. |
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| e_pang |
| Posted: Thu Aug 10, 2006 1:22 am Post subject: |
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Investing Sr. Associate
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Could any one please example to me what REIT stand for? Sorry, I might be a little slow on this one...though I am always trying to learn. I am guessing it has to do with real estate somehow, but I am not for sure!
Thanks a lot in advice
Also, where do you think Real Estate is heading in the future? |
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