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Investing in REITS - Video

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  1. #1

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    Investing in REITS - Video

    Covers the basics of what REITs are and why they might be good for your portfolio..


    https://youtu.be/vfAH1ZCyDZw


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    That is a good video, with a well-written script and explanation. The frontier chart, shown at 6:30 in the video, is for me a reason not to invest money in a REIT.


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    Not available to non-US investors.

    The closest proxy I can find would be a DIY approach using AOA, AOC, AOK (not sure if I have the last two tickers right.. as they're of no interest to me...) - usual WHT issues and more (how does an ETF of ETFs pass through WHT QII refunds) apply.

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    I used to think like that, for multiple asset classes that didn't seem to add anything useful: "don't look at only <specify time interval>, but look at a 3 times longer interval and you might get to see a benefit". However, I know for sure that my personal circumstances and financial objectives will have changed during that time interval and I don't sit still and wait and see if the asset class has indeed added some value.
    Heck, it even remains to be seen whether I will still be around, 3 decades from now.

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    Quote Originally Posted by Windmill65:
    That is a good video, with a well-written script and explanation. The frontier chart, shown at 6:30 in the video, is for me a reason not to invest money in a REIT.
    It depends what REIT you are looking at. My guess is that the performance of that ishare global property is lower because of the appreciation of the USD, and the inclusion of shopping centres (malls), which have taken a beating over the last years. If you include only triple net REITs (e.g. NNN, O, WPC, EPRT) I believe the performance is much much better.

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    Quote Originally Posted by shri:
    Not available to non-US investors.

    The closest proxy I can find would be a DIY approach using AOA, AOC, AOK (not sure if I have the last two tickers right.. as they're of no interest to me...) - usual WHT issues and more (how does an ETF of ETFs pass through WHT QII refunds) apply.
    Not quite true. They're available to UK residents also via Vanguard directly. However, I think you need to state you are a UK resident for tax purposes when opening the account, and likely need access to a UK bank account and possibly a UK address.

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    - there is an Irish dominciled iShares ETF (have not done any mental math here...) which has similar top 10 holdings.

    https://www.ishares.com/uk/individua...ield-ucits-etf

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    Quote Originally Posted by Kowloon72:
    Not quite true. They're available to UK residents also via Vanguard directly. However, I think you need to state you are a UK resident for tax purposes when opening the account, and likely need access to a UK bank account and possibly a UK address.
    For all practical purposes not available to non-UK (sorry, typed US in the earlier post) investors.

    Who the hell in their right mind would want to be a UK resident for tax purposes?

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    The currency of the ETF is irrelevant, it's the currency of the constituents which is important, and as I mentioned in my previous post, many of the REITs owned by that ETF are non-US based, so the price dropped as the USD appreciated. Here you can compare the performance of SPY with the US REITs I mentioned in my previous post. You can see that REITs do much better over the long term (20 years here), but of course take a bigger beating if there is a recession (and in particular with this virus):


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    Quote Originally Posted by shri:
    For all practical purposes not available to non-UK (sorry, typed US in the earlier post) investors.

    Who the hell in their right mind would want to be a UK resident for tax purposes?
    Oh, yeah if I'd read UK instead of US i'd never have replied!

    RE tax domicile. Hargreaves Landsdown allow people who have left the UK (and are no longer tax resident) to continue investing, but it has to be outside of an ISA. Not sure if Vanguard allow similar.

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