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What you should look for before investing in REIT?

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  • Most REIT's specialize in a certain segment, which you can find in the fund summary. Understand the risks of each sector. For example, REIT's holding undeveloped land carry more risk than REITs investing in high-end apartments in a major metropolis.
  • REIT's should pay a dividend from operations. At times, REIT's use the additional capital to fund dividends due to stressed assets.
  • Timing the investment in real estate is the key to making money. If REIT was created after a housing market recession; it could own and buy valuable properties at low prices.

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