REITs - Real Estate Investment Trusts - Info & Discussion: REIT fund

» Oaktoad - REIT fund

Vamguard has one that I use as my benchmark. So far I am a bit ahead of them which I think is due to my strategy of buying very high yield REITs.

I have not looked into the fund, but would guess that for smaller amounts it would be a good place to dollar cost average. BEing a Vanguard fund the fees should be reasonable.

It is up 32.8% for three years compared to the GNMA fund which is up 24%.

Both real estate connected.. just one is government guaranteed and the other is not.

If the economy continues strong REITs should stay healthy. Most predictions are that the economy will stay strong.

With higher interest rates and a budget surplus (maybe, but certainly not the huge deficits of years past) the government has the tools available to keep this economy doing well for several years to come.

I still see REITs as a valuable part of an investment stratery and asset allocation..

New buy for me is MAA which invests in apartments. One downside that is noted (which I really do not agree with) is that as more people buy homes then apartment rents will go down or not be able to be increased. I think this is downright silly as there are not enough houses being built and in many places the costs are running so much higher that people will be stuck being renters.

Also, some of these apts are damn nice and have lifestyle features that many people like such as rec centers, pools etc. Good management can keep these pumping out profits. Perhaps those to be hurt more are the duplex, fourplex type units that don't have economies of scale and often have mom and pop mgmt which may not be very good.

-- posted by Oaktoad