Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [reit]

A real estate investment trust (REIT) is a company that owns, operates or finances income-producing real estate.

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Why are residential investment properties owned by non-professional investors and not large corporations?

This question is relevant for Australia but I would think that it would apply to other countries too. I've noticed that nearly all residential investment properties are owned by non professional investors. What I mean by that is that the landlord is…
Joe.E
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Are REITs more correlated with the stock market or the real estate market?

Suppose a person has a sizable portion of his networth in stocks. He wants to diversify his wealth into the real estate asset class. For the sake of correct diversification, it will be nice to know whether REITs are more correlated with the stock…
curious
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Owning REIT vs owning real estate - which has a better hypothetical ROI?

Let's say I want to invest in the real estate market because I am bullish on it. Consider two options: invest in REITs or actually purchase real estate. My question is which option has a better overall return on investment for me, dollar for dollar,…
Jeremy
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Are REIT worth it and is it a good option to generate passive income for a while?

I was talking to a friend of my who is into investing. I told him my plan is to buy a house and rent it out for passive income and have a property management company handle it. My friend then told me that I might as well invest into REIT if I…
Investing Noob
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What tax forms should REIT owners expect to receive?

In the United States, an MLP generates a yearly K-1 form. Do REITs generate any special year end tax form?
zundarz
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REIT versus real estate: total yearly returns (when accounting for leverage)

Recently, I saw an article arguing that REITs performed better than traditional real estate (RE) in terms of total returns: Jussi Askola, Don't buy real estate, buy REITs instead, Seeking Alpha, December 15,…
lampShadesDrifter
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Are dividends paid by REIT ETFs considered "qualified" dividends?

Are dividends paid by an ETF that invests in REITs taxed at the "qualified" dividend rate (typically, 15% vs. the ordinary income tax rate)? (If I recall correctly, REITs are not subject to double taxation, so I don't think the favorable dividend…
Tony the Pony
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Why REIT prices are not going down while bonds are being hammered?

I have investments in a bunch of REITs like AGNC, NLY. With recent confirmation from FED on a hike in interest rates, I am seeing bond prices undergoing a correction. As far as I know REITs are very sensitive to hike in interest rates. My question…
vsingh
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Can buying REIT's be compared to investing in Real Estate?

I am currently renting an apartment, and investing a portion of my income in stocks and bonds (90/10). Part of my stock allocation contains REIT's. I have been saving to purchase a home (I have enough for a 20% down payment), but was wondering if…
Sheehan Alam
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How can a REIT fund grow when it has to distribute 90% of their taxable income?

You can't grow that much if you invest only 10% of what's left after dividends
kambi
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Where to find real estate holdings of a REIT?

I'm analyzing REITs and would like to look at the property holdings. If this information is not in the annual report, where else can I find it? Are there public available regulatory documents that need to be filed by the REIT on its holdings?
user423119
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Does the P/E ratio of REITs matter for dividend investing?

When buying REITs, one essentially looks for the dividend yield (last dividend vs. current share price). If it's an established fund, does it really matter what's the P/E ratio if one capitalizes on the dividend yield? For example, if I buy a REIT…
Sparkler
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Investing in REITs - VGSIX vs VNQ

I recently began investing and planning for retirement. I opened up a Roth IRA through Vanguard and bought about $2,000 of Vanguard Target Retirement 2045 Fund (VTIVX). I'd like to invest in real estate through REITs. I saw both of these REITs…
Gabe
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Why is a REIT (Real estate investment trust) able to grow and appreciate, given that it is not able to retain its earnings?

REITs have to distribute out most of their earnings to shareholders. This deprives REITs the needed cash to reinvest into their business to grow organically. Wouldn't this stunt REITs' business growth and price appreciation? If REITs need capital,…
curious
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REIT vs Real Estate - 4 Considerations

Assume the following scenario: A person wants to invest $100k in REIT or buying a rental property. (Assume a property management company is used so we don't need to compare the work from each.) What effect (if any) does getting a mortgage have for…
Jonathan Winters
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