REITs sequel

What are the characteristics of REITs?

1, forcing high dividends on a regular basis.

All countries require REITs to distribute at least 90% of their net income to investors every year. In this way, REITs can bring investors a steady stream of cash flow every year. The United States generally pays dividends quarterly, while Hong Kong generally pays dividends every six months. Just like collecting rent, the United States pays it quarterly and Hong Kong pays it semi-annually. Because REITs have the legal requirement of mandatory high dividends, REITs are simply tailor-made investment tools for small and medium-sized investors to achieve financial freedom.

2. The investment threshold is low.

Usually thousands of dollars can be invested. Hong Kong REITs 1 hand is 1000 shares, bought from 1 hand. American REITs 1 share buy. If you invest directly in real estate, you need at least several hundred thousand to get started.

3. Low transaction cost

Real estate investment trusts are generally exempt from corporate income tax. Investors only need to pay commission when buying and selling REITs, just like buying and selling stocks, they don't need to pay other high taxes. If it is a direct investment in real estate, the tax on buying and selling alone is between 10%-30% of the house price.

4. Strong liquidity

Buying and selling REITs is as convenient as buying and selling stocks. It can be sold at any time during trading hours.

5. Professional management

The management team of REITs are all professionals in the real estate field. They are generally much better at managing property than individuals. If you buy the property directly and manage it yourself, it is probably not as good as the management team of REITs. And we need to spend a lot of time and energy on real estate.

6. The yield is relatively high.

Compared with directly holding real estate, the yield of holding REITs is relatively high. For example, we now use100,000 to buy an apartment in Beijing Oriental Haoting for rent, and the rental return rate will not exceed 3%. The annual rental income will not exceed 300 thousand.

If you buy a host hotel in American REITS for100000 now, what is the dividend yield?

20 19: 0.85 for the host. Assuming that the future dividend is stable (it has been stable for so many years), the current price is 10.06, and the China buyer deducts tax 10%, then the dividend is 0.765 and the dividend yield is 7.6%. The investment100000, the income is 760000, which is higher than the real return of buying a house. It has good liquidity and can be sold at any time, which is very worth investing.

Of course, REITs also have risks. Because investing in REITs is essentially investing in real estate, most of the risks in the real estate market also apply to REITs.

Many countries have REITs, but I suggest that it is enough to invest only in REITs in Hong Kong and the United States.

Because through REITs in Hong Kong and the United States, you can indirectly own real estate in China, Hong Kong and the United States. The real estate operation cycle in these three regions is different, which can spread risks.

There are *** 10 REITS in Hong Kong, all of which are worth investing. You can focus on analysis.