One good reason to invest in REITs is due to the fact that they pay dividends. Often, the dividend yields on REITs are fairly generous. So, you can build a regular income stream, in addition to the hope of capital appreciation from the shares that you hold.
What are the advantages of investing in a REIT?
A REIT is a suboptimal way of investing into Real Estate. The advantages are liquidity, a perceived exposure into a different asset class, and the ability to trade on a discounted net asset value when you find a good deal. When purchased at the right time, a REIT can even provide significant returns.
Why should I invest in REITs?
Why Invest in REITs. REITs historically have delivered competitive total returns, based on high, steady dividend income and long-term capital appreciation. Their comparatively low correlation with other assets also makes them an excellent portfolio diversifier that can help reduce overall portfolio risk and increase returns.
How to invest in REITs?
Know why REITS can be good investments Equity REITs were created to make investing in commercial real estate accessible to everyday investors.
