Thought about buying an income property, then came across REITs. Anyone have experience?

Hi all. I'm a 35yo professional and have just over a year's worth of drawing a salary under my belt. I'm single and earn more than I need, so pretty much all my extra money is just dumped into my retirement. I want to expand and try out some investing on my own to gain some experience.

I was originally interested in purchasing an income property, but after research and asking family/friends/coworkers, I came across the idea of investing in a real estate trust. Have any of you guys invested in these, and any advice or concerns?

Thanks!

 

A good portion of my investments are in REITs and I like to keep it that way. My favorite is NYMT, they pay a great dividend and the stock price has been stable and slightly on the upside the past few years. Especially if they pay a dividend with a stable price, I feel they have much more potential to gain a higher return in the long run. In the short term you are even collecting some back. Personally I just reinvest the dividends, but at the end of the day the potential is multiplied.

I wouldn't mind owning income properties either though, a lot of potential there as well, just a bit more work.

 

I did indeed invest in a REIT back in the mid-2000s. The return on the investment was phenomenal. However, I began to be concerned (turns out rightly) about the housing market and got out. I bailed too soon, but I suppose that is better than too late.


Anyway, I like them and would get back into it again. It provides some of the potential of real estate investment, minus all the hassles of actually owning the property.

 

Investing in REITs is a good option and it is generally a safe investment. With real estate investment your potential profits are higher, but so is the risk. Might be a good idea to invest in REITs and to start researching real estate investment. There are a lot of good books on the subject and this will allow you to build on your knowledge. When you feel comfortable with investing in real estate you can then start small.

 

REITs can also give you access to types of real estate which you could never acquire yourself. Such as shopping malls, healthcare facilities etc.

 

I don't think that's a bad idea. I'm surprised that more people don't do it. I would definitely give it some thought -- you might decide to go for it!

 

REITs is very safest place to invest , in that you can also find good deals in real estate

 

How does one go about investing in REITs ?...or you need to be rubbing shoulders with the likes of George Soros and Warren Buffet to actually trade in these type of investments?

 

In my opinion, it is all about the level of control and the amount of time you are willing to put into your investment.

Property investing will give you a higher return and useful experience that you can use to earn more money in the future. But it takes time to learn and master and you might make some mistakes along the way.

REIT's on the other hand, let others do your investment for you, however, you get a lower share of the money they made off your investment but also face less risk because the investors they have on board are usually people who are good at what they do.

It's just like choosing to invest in a Mutual Fund or investing in stocks on your own. All about how much effort you are willing to put in and the risks you want to take.