| Author |
Message
|
| amaw |
 Posted: Sun Feb 12, 2006 9:48 pm Post subject: How to invest in REIT's |
 |
|
New Poster
|
How does one go about investing in a real estate investment trust? Just buy stock in that REIT through the nyse?
any ideas? |
|
| Back to top |
|
 |
| waltman |
| Posted: Mon Apr 24, 2006 11:06 am Post subject: |
|
|
Investing Sr. Associate
|
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 |
|
| Back to top |
|
|
| efflandt |
| Posted: Mon Apr 24, 2006 5:49 pm Post subject: |
|
|
Investing Manager
|
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. |
|
| Back to top |
|
|
| waltman |
| Posted: Thu Apr 27, 2006 5:06 am Post subject: |
|
|
Investing Sr. Associate
|
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... |
|
| Back to top |
|
|
| card2u |
| Posted: Tue Aug 08, 2006 2:00 pm Post subject: |
|
|
Investing Sr. Associate
|
| 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. |
|
| Back to top |
|
|
| e_pang |
| Posted: Thu Aug 10, 2006 1:22 am Post subject: |
|
|
Investing Sr. Associate
|
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? |
|
| Back to top |
|
|
|
|
stock market game on the web. At eInvesting you compete for monthly cash prizes while you interact, make virtual dollars, purchase items, and trade in the realistic stock market simulator. We make investing FUN!
