Read Online REITs: A great opportunity to beat the market Kindle
Real estate investment trusts are a great opportunity to approach the real estate industry. Many people believe that a big initial capital is needed in order to make their first investment in this sector. What they do not know is that they are wrong, because with REITs this is not necessary. There are different real estate investment trusts according to their property type sector. For example, apartments belong to residential REITs, while warehouses to industrial REITs. However, investors must know that every sector has different risks and rewards. Every year, real estate investment trusts attract new investors mainly because of their great advantages. They can achieve great potential returns due to high dividend yields and to their possible growth in value. To qualify as a REIT, many requirements must be satisfied. One of them is the distribution of at least 90% of taxable income to shareholders to avoid taxation at the corporate level. Throughout their history, they have outperformed many indices, the S&P 500 as well. REITs are great to diversify investor’s portfolios but when it comes to selection, analysts use specific operating metrics to determine the strength of operations. The selection of the right property type at the right period in time is fundamental because the economic main drivers and events differently affect every sector.The eBook’s main goal is to enlighten REITs’ major characteristics, also explaining why they are a good investment and why every investor should hold at least one REIT in his portfolio. It also describes which are the main performance indicators used by investors in order to analyze companies.
