Chapter 13
Real Estate Investment Trusts (REITs): Becoming a Virtual Landlord
In This Chapter
Understanding what makes a REIT a REIT
Knowing how much to invest
Focusing on the best REIT fund options
Ever wish you could be a real estate mogul à la Donald Trump? Sure you do. There isn’t a single person who wouldn’t love to own a few shopping malls, or some big office buildings, and collect thousands of dollars in rent month after month. Of course, most of us don’t have the millions of dollars it would take to buy prime Bay Street real estate. However, that doesn’t mean you can’t own your own office building.
Investors can get access to real estate assets through real estate investment trusts, or REITs, which are, in a nutshell, companies that hold portfolios of properties, such as shopping malls, office buildings, hotels, amusement parks, or timberland. Or they may hold certain real estate-related assets, such as commercial mortgages. Many Canadian REITS are publicly held, and their stocks trade on the open market just like any other stock.
Via dozens of mutual funds, you can buy into a collection of REITs at one time. You can similarly buy a bevy of REITs via ETFs. And that may ...
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