REIT Investing - Is Now A Good Time To Buy?

Real estate investment trusts (REITs) provide a high income alternative to stocks that over the long term have generated a comparable return to stocks. This year there has been a brutal selloff in REITs which has produced some opportunities for investors. So what are REITs, where are the opportunities now, and what are the risks associated with REIT investing?

Timestamps
00:00 Introduction
00:31 What is a REIT?
06:29 Higher Interest Rates
09:31 High Dividend Yield
11:17 Risk
13:30 Conclusion

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DISCLAIMER
All information is given for educational purposes and is not financial advice. Ramin does not provide recommendations and is not responsible for investment actions taken by viewers. Figures that are quoted refer to the past and past performance is not a reliable indicator of future results.

#REITs #Investing #PensionCraft

[harrywilliams]

Please do more on REITs! Very useful video - Thanks!!

[Peter-MH]

And put them in your ISA if you’re in the U.K. to save paying 20% withholding tax on the dividends!

[badass]

Good video. No mention of gearing or difficulty in trying to grow since all income must be distributed.
REITs tend to be continually issuing new shares or borrowing more to acquire property.

[fabianaa.]

Most informative video about REITs I've ever watched. Thank you

[rightangletriangle]

Thanks for sharing. Great info about REITs. Have individual REITs in my dividend portfolio and they are behaving ok this year considering the bad market that we are in.

[chappasuk]

Firstly may I say I enjoyed your post. I don’t normally comment as I find there’s always somebody out there looking for an argument, life’s too short. However, I did want to state that I own a number of both U.K. and US REIT’s in my SIPP and ISA. I have invested in them as a way of boosting my income as I’m retired. The sector, as you stated has taken a hit recently although certainly a significant number of mREIT’s in US have the majority of their lending floating rate which has benefited for the recent rises in interest rates.

[bipolarpunt]

I am looking at NorthWest Healthcare REIT in Canada, it only own Medical buildings/clinics and Hospitals. It has a 8% Dividend and a 8.5 P/E. I am thinking Healthcare is normally funded in some way by Gov and Medical is the last thing people will give up, making this a more stable option. Do you have any reasons this is not more secure?

[frbuccoliero]

Thanks for the video. What do you think of Ben Felix's notes on REITS? Citing Peter Mladina's paper REITS cannot be considered a separate asset class, as their returns are achievable through 60% small-cap value stocks + 40% HY bonds, and exposing to REITS only implies exposing to their uncompensated idiosyncratic risk.

[nataliaregina]

wow fantastic! So informative - I'm new to this topic and am very thankful for such an easy and informative presentation here, helping to teach and educate - thank you, good high quality content rather than just another YouTube fluff piece!!

[torus]

I don't like them, fund charges can be high I've seen over 2% which is great on a 4% yield. Plus if they are held outside an ISA or Pension you have a 20% withholding tax to pay on earnings.

[audriusurbonavicius]

Some REITs offer higher dividend yields and then charge high administration fees. 😀

[caparn]

Thanks, I didn't even know you could buy REITs in the UK.

[pedroernesto]

In Brazil REITs are call FII, they mostly give a monthly income, that is free of taxes if you have less than 10% of the total shares, you still pay capital gain taxes if you sell with a profit, they must pay shareholders at least 95% of it's income, it' still a young market but growing

[vinayakpatil]

Interesting video. Thanks for explaining why dividends look attractive even though real estate is not doing so well in the UK. I have some questions for knowledgeable audience. 1) Many REITs show NAV (Net asset value) much higher than the valuation, how to identify if there is a trouble brewing behind the scene. Is it a sign that the REIT is in trouble? 2) The example of INTU shoping centre going into administration, surely if they have assets, those will be liquidated and paid back to share holders (Unless of-course their debts are higher than assets)? How to identify total debt of REITs? 3) Is there any managed mutual fund catering REITs that will allow me hands-off approach? (similar to mutual funds).

[george]

REITs have high charges so I prefer a low cost, diversified index fund investing in stocks.

[djpuplex]

Good time a great time. Wish I had room in my retirement accounts. I'm praying REITs are still beat up after January 1st.

[myafrosheen]

The issue with UK vs US reits is the very expensive ongoing charges of UK reits compared to the US ones which don't have this expense

[TheNimbleNomad]

Thanks for this video..
Are you able to do a video on.. REIT funds in the UK? Also how does one perform valuations on REITs? I’m an equity guy so this is quite different for me to value..

[colinevewright]

I personally wouldn't touch UK REITs, only high quality US ones for me such as WPC, O, AVB etc

[MadderPrinciple]

Great video - for the reaasons given I have tended away from individual REITS but ETFs are a good way to learn about their complexities, invested in IUKP to test this asset class out!