This means having enough money to purchase investment property, maintenance, insurance, taxes and always trying to keep that house/property leased. This maybe a headache people just don't want to deal with, although the headache could very well be rewarding in the long run.
There is an alternative to owning property and rental income without the headaches. This alternative pays great dividends and lots of growth. I am talking about REIT's, Real Estate Investment Trusts, that pay you to own shares in companies that own rental property ect, weather it be commercial or residential.
Now if you do a search you may feel a little over whelmed with the vast amounts of options out there for investing in REIT's. After digging around I found an ETF that suits me quit well, VNQ - Vanguard REIT Etf. This ETF holds quite the portfolio of amazing REIT's all rolled up into one ETF. Quick snap shot of its holdings.
REIT ETF as of 12/31/2014 | MSCI US REIT Index as of 12/31/2014 | |
---|---|---|
Diversified REITs | 9.80% | 9.80% |
Health Care REITs | 13.90% | 13.90% |
Hotel & Resort REITs | 8.10% | 8.00% |
Industrial REITs | 4.50% | 4.50% |
Office REITs | 13.30% | 13.30% |
Residential REITs | 16.20% | 16.20% |
Retail REITs | 25.50% | 25.50% |
Specialized REITs | 8.70% | 8.70% |
Month-end ten largest holdings
(37.7% of total net assets) as of 12/31/2014
(37.7% of total net assets) as of 12/31/2014
1 | Simon Property Group Inc. | |
2 | Public Storage | |
3 | Equity Residential | |
4 | Health Care REIT Inc. | |
5 | Prologis Inc. | |
6 | AvalonBay Communities Inc. | |
7 | Ventas Inc. | |
8 | HCP Inc. | |
9 | Vornado Realty Trust | |
10 | Boston Properties Inc. |
Current trading price as of 1-17-15 : $87.34
Year Chart
This baby has been on fire as you can, while also paying a nice 3.60% annual distribution yield.
I do not hold any position in VNQ yet, just a little to high in price for me and will be waiting for a pullback to start buying into it.
So it would be best to look into REIT's more and may be a great add to your portfolio.
Thanks for sharing. I was looking for Real Estate Investment Training. Keep exploring.
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