I get a lot about the fact that people want to invest in real estate, but the threshold of the entrance is simply depreciated in the Russian Federation. Commercial areas are millions. And if you want to invest in dollars, then there is generally a dark forest. But of course there are options. And today I want to once again update information about real estate funds.
What is Reit?
REIT — REAL ESTATE INVESTMENT TRUSTS — Real estate funds that buy or build real estate, rent it or sell, and also buy mortgage securities from banks.
The resulting income is distributed among the shareholders of the Fund by paying dividends. Buy shares of most real estate funds can anyone.
Reit appeared in the United States in the 19th century, but in modern form there are thanks to the law 86-779, signed by Dwight Eisenhower in 1960. The law enabled private investors to invest in rental of real estate on a par with large investment funds.
According to US law, countries are obliged to pay 90% of their taxable income, in the form of dividends for their shareholders.
90% of the Rate’s income is paid to investors, and 10% of funds go to the further development of the company.
So, as 90% of profits, this is a very significant payment, then, in percentage, to the value of the action, especially under current conditions, dividend payments look very attractive.
Review Reit Funds
1) Vanguard Real Estate Index Fund (VNQ)
Dividends by Pais are paid quarterly, according to ETFDB.com, dividend yield is 3.77%.
2) Vanguard Global ex-U. S. Real Estate Index Fund (VNQI)
A significant proportion falls on Japan, Great Britain and Hong Kong — more than 40% of the assets of the Fund.
Dividend yield, according to
3) Global X SupDividend REIT (SRET)
Sretive Solactive Global Superdividend Reit is monitored by the Solaxy Global Superdividend Reit index, which includes 30 shares from the USA, Singapore and South Africa.
A distinctive feature of Global X Superdividend is the monthly payment of dividends, the dividend yield is 12.92%, according to
Risks when investing in Reit funds
Not particularly rejoice in such profitability, since the risks when investing in the funds are very large. Reit volatility is very serious.
For example, Sret is a couple of years already in a drawdown of 30-60%. How do you?
Therefore, from this list, I would still drew attention to VNQ. Volatility there at the level of the index, but the diva is not high. See the schedule below.
Allocation in the portfolio of Reit funds is not more than 20%.
Want to better figure out investing? On free online advice, we will tell me what exactly for you will work in the stock market.