REITs

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RealMoneyIssues

RealMoneyIssues

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What do y'all think about using REITs in an IRA? Or, possibly to or not to invest REITs at all?

I was considering using REITs because I wanted to take advantage of what I believe to be a future rise (just being stupid as it can't get MUCH lower) in the real estate market without having to own more properties (not quite ready to be a landlord).

Thanks !!
 
I read a positive article in the WAll Street Journal about REITs last week. They were recommending active purchase for future income even though the group as a whole has had some nice price gains already.
 
I did a quick search of WSJ and read a few articles and although I am a newbie, I just "feel" getting a REIT ETF in my consolidated IRA is a good idea. I figure it will positively add to my equity holdings outside of stocks. TSP will be where I have most if not all of my stock holdings, so I will use my IRA to hold investments I cannot get in TSP.

I will keep looking and see what else I can do to diversify and improve my odds of getting better returns.

Thanks !!
 
RealMoneyIssues said:
I did a quick search of WSJ and read a few articles and although I am a newbie, I just "feel" getting a REIT ETF in my consolidated IRA is a good idea. I figure it will positively add to my equity holdings outside of stocks. TSP will be where I have most if not all of my stock holdings, so I will use my IRA to hold investments I cannot get in TSP.

I will keep looking and see what else I can do to diversify and improve my odds of getting better returns.

Thanks !!
Click to expand...

Research Annaly Cap. Mgt.(NLY) . Not recommending you understand but high dividend yield in this low interest environment.:)
 
Scout333 said:
Research Annaly Cap. Mgt.(NLY) . Not recommending you understand but high dividend yield in this low interest environment.:)
Click to expand...
Interesting, Scout! I've been looking at VNO, O or VNQ. The divvy on this one is more than double. I'll starting doing my due diligence on NLY and thanks for pointing it out.
 
Steel_Magnolia said:
Scout333 said:
Research Annaly Cap. Mgt.(NLY) . Not recommending you understand but high dividend yield in this low interest environment. :-)
Click to expand...
Interesting, Scout! I've been looking at VNO, O or VNQ. The divvy on this one is more than double. I'll starting doing my due diligence on NLY and thanks for pointing it out.
Click to expand...

I have been looking at VNQ and O, but I will definately look at NLY.

Thanks !!
 
RealMoneyIssues said:
I will have to dig into it, but I thought most REITs were commercial property and not residential... not sure, just thought I would throw that out there.
Click to expand...

i don't think it matters much if it's commercial or residential, it's all dirt, and that's gonna beat paper on the midterm horizon the way i see it.
 
read the whole article reit talk comes in halfway down-multi-unit housing, pick your reit carefully, commercial mortgage rollovers have not hit hard yet-yet to come. lots of empty commercial space in my town, dont see it getting bettter yet.
 
burrocrat said:
i don't think it matters much if it's commercial or residential, it's all dirt, and that's gonna beat paper on the midterm horizon the way i see it.
Click to expand...

ok, sorry, quick scan failed... I don't necessarily disagree with the analysis, just not sure that for the long term, putting ~10% into a few REITs will be a bad thing. Trying to have more in equities than just stock...

Thanks for the information and thought provoking insight.
 
RealMoneyIssues said:
putting ~10% into a few REIT
Click to expand...

well the good thing about putting ~10% in is the most you can lose is ~10%.

maybe REIT's do better than that, who knows, that's the hustle part, that's up to you. sometimes you got to pull the cord before you hit the ground and it goes to zero, sometimes you catch a draft and hit it bigtime.

that's what makes it interesting. me? i'm buying anything to do with trains, moons (or luna in the name), and dirt. i think that strategery is gonna pay off.
 
burrocrat said:
got to feel it first, got to believe, then you'll see.

that's how i think it works.
Click to expand...

Yes, my head gets in the way alla time, need to just turn it loose and go with the intuition now and then. but i avoided the downdraft of 08, so reading and thinking helped me out there.

but then i missed the updrafts after that too. got to find the balance, its in there somewhere. when I start reading about insurance companies going bust on commercial loan rollover defaults and bankruptsies, that will be when I think/feel time for reits for me, ymmv.
 
Some of those REITs can make a great addition to a RothIRA since the high dividend payouts aren't subject to tax, if you're looking for someway to boost the cash funds in your account (perhaps for other stock/equity purchases).
 
Changing interest environment- Impact on REITS

http://money.msn.com/business-news/article.aspx?feed=MW&date=20110518&id=13647560

"Economists think the Fed will start raising rates later this year or early next year. Higher rates would reduce borrowing. Even though the bond-buying program is scheduled to end in June, the Fed said it's continuing a separate support program. It is reinvesting about $17 billion a month in proceeds from its portfolio of mortgage securities to buy Treasury debt. That should help keep rates low on mortgages and other consumer loans. "
 
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