REITs vs physical property?

[Badda]

Hello

Has anyone else swapped physical properties for REIT investments? Am toying with doing same but wondered about pitfalls.

[98elise]

I was considering it before Corona. Yields were are good as owning property and you could hold them in a tax free wrapper.

Corona has hit dividends and lots of tenants are not paying their rent. I'm staying out until this settles. Land Securities have put a huge amount of their property up for sale.

[Badda]

True, there are other REITs available too though, such as healthcare.

[Aftershox]

Lots of different types for sure. Pick a semi risk-adverse (in the current times) one and hold ideally in an ISA.

I only have £15k in an ISA but wishing I had more! Nice way to get some tax free income!

[chinnyman]

I haven't checked but what's a REITS performance compared to a normal fund?

[Aftershox]

chinnyman said:

I haven't checked but what's a REITS performance compared to a normal fund?

20-30% yield.

[benbuhagiar]

Aftershox said:

20-30% yield.

Are you sure about that? Haven't seen figures anything like that.

[bad company]

benbuhagiar said:

Aftershox said:

20-30% yield.

Are you sure about that? Haven't seen figures anything like that.

If there’s a REIT yielding anything like that please let me know.

I hold a few REITs but moved from shopping centre and office holdings to those with portfolios of warehouses and medical facilities etc., Primary Health (PHP), Assura, Warehouse REIT, Tritax Big Box etc., etc. Should yield around 4% on average.

[98elise]

bad company said:

benbuhagiar said:

Aftershox said:

20-30% yield.

Are you sure about that? Haven't seen figures anything like that.

If there’s a REIT yielding anything like that please let me know.

I hold a few REITs but moved from shopping centre and office holdings to those with portfolios of warehouses and medical facilities etc., Primary Health (PHP), Assura, Warehouse REIT, Tritax Big Box etc., etc. Should yield around 4% on average.

Agreed. REIT's are around the same as holding property so you are looking at 4-6%. 20-30% would be amazing, nobody would buy property!

[HootersGsy]

98elise said:

Agreed. REIT's are around the same as holding property so you are looking at 4-6%. 20-30% would be amazing, nobody would buy property!

Except of course the trustees in order to generate that magical 20-30% return.

[chinnyman]

Anybody reccomend a REIT?

[bad company]

chinnyman said:

Anybody reccomend a REIT?

I’m very happy with the one’s I listed above. All ‘steady eddies’ imo, won’t shoot the lights out but should offer a decent and reliable yield.

[cailean]

Have a look at the US REITs, much bigger and safer than UK ones. Check out ones like O, STOR, ESS, AVB, WPC. They can be bought in ISAs, SIPPs etc

[Badda]

So I have dabbled in Target Healthcare REIT since the OP. 5.9% yield, https://www.targethealthcarereit.co.uk/ £600m of property in 73 homes.

I've only stuck a couple of grand in for now but plan to steadily grow the investment if it continues well.

[bad company]

Badda said:

So I have dabbled in Target Healthcare REIT since the OP. 5.9% yield, https://www.targethealthcarereit.co.uk/ £600m of property in 73 homes.

I've only stuck a couple of grand in for now but plan to steadily grow the investment if it continues well.

I also hold Target (THRL) and have done for some years. They won’t set the world alight but a good steady income play.

Also take a look at Primary Health Properties (PHP) and Assura (AGR).

[Badda]

Thanks.

[hyphen]

Aftershox said:

20-30% yield.

Aftershox's REIT GOOD Pyramid Scheme

[hyphen]

Badda said:

Hello
... but wondered about pitfalls.

As happened with many property funds during Covid, the fund may be closed for withdrawals in extreme times. As the value of the underlying assets if sold at that moment would be drastically below its recorded value.

[Vibrativepuma]

hyphen said:

Aftershox said:

20-30% yield.

Aftershox's REIT GOOD Pyramid Scheme

Not sure Aftershox's advise is sound... WARNING WARNING

[Aftershox]

Vibrativepuma said:

hyphen said:

Aftershox said:

20-30% yield.

Aftershox's REIT GOOD Pyramid Scheme

Not sure Aftershox's advise is sound... WARNING WARNING

Buy a heavily discounted REIT right now. Wait until 2021 for full div's and the SP will rise. Look for bargains and you can get 30% projected.