« previous next »
Pages: 1 [2]

Author Topic: Income from REITS  (Read 29512 times)

Fawkes85

  • Guest
Re: Income from REITS
« Reply #15 on: November 04, 2015, 07:15:26 am »
Quote from: Mr_Dividend on November 04, 2015, 06:11:12 am
I have also tried to get across that the dividend method works for me and I think is also suitable for people reaching/ in retirement that needs to safe guard capital and income - but personally, for most young people, those with jobs and those that have substantial investments - I would not be seeking yield but capital growth.

I dunno. I am working but I feel that even though I save as much as I possibly can it just isn't as much as I would like to save and invest. So by investing in high dividend yielding REITs I have so far insured that over the next year I will get a whole month's extra salary through dividends. A whole month's extra salary to invest. Which will in turn increase the dividends I will earn the year after if combined with another full years investing. I think if I keep doing that for 10 years I will be earning a pretty decent amount in dividends by the time I reach 40. But I dunno. Still deciding how I will go about it.
« Last Edit: November 04, 2015, 07:49:30 am by Fawkes85 »
Logged

Mr_Dividend

  • Hero Member
  • *****
  • Posts: 586
  • Karma: +21/-0
    • View Profile
Re: Income from REITS
« Reply #16 on: November 04, 2015, 07:32:20 am »
Just look at future dividends as well - with REITS 8 - 10% growth is normal and decent. But some shares, although starting yields are not great, grow them pretty rapidly - 20% - 30%. Thinking (the ones I have) Capitec, Mr Price, PGR - all are now giving me decent dividends on my original investment and pretty good growth on the capital - and that's under 3 years. Dividends are great, but dividends AND good growth, well thats fantastic.

Just don't miss out on Aspen, taste, Trustco, discovery, adapt and all the other great companies we have - -in 20 years time you will be laughing - and dividends will come. IMO of course.
Logged

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Income from REITS
« Reply #17 on: November 05, 2015, 08:21:55 am »
Further to my reply #12 where I outlined the close correlation between bond yields and listed property yields, it is a given that interest rates will go up in ZA and a December US increase seems more likely now than 1 month ago. Furthermore we will probably be downgraded by the ratings agencies (S&P and co.). This will move bond yields up and consequently listed property yields, meaning a drop in the prices of listed property quoted on the JSE. In other words a bad time to buy REITS. Only consider those with non ZA portfolios for reasons already mentioned previously. I have a mix of both but if selling the ZA focused ones my CGT would be prohibitive.
This just a mild warning to anyone wanting to buy ZA focused REITS now - there will be better opportunities once interest rates are close to topping out.

« Last Edit: November 05, 2015, 08:51:20 am by Moonraker »
Logged

jaDEB

  • Global Moderator
  • Hero Member
  • *****
  • Posts: 4551
  • Karma: +31/-3
    • View Profile
Re: Income from REITS
« Reply #18 on: November 05, 2015, 10:30:41 am »
 ;D

Ok, now I know what u talking about . A Real Estate Investment Trust - REIT. Had no frikkin idea .....
Logged
jaDEB

If it scares you, it's a sign you need to do it

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Income from REITS
« Reply #19 on: December 05, 2015, 06:04:49 pm »
@Fawkes85

Applies to US in particular but would also apply to Germany/UK.

The idea that rising interest rates are always bad for REITs may need another look.

Something that Wayne McCurrie doesn't seem to understand.
Logged

Fawkes85

  • Guest
Re: Income from REITS
« Reply #20 on: December 05, 2015, 08:35:00 pm »
Quote from: Moonraker on December 05, 2015, 06:04:49 pm
@Fawkes85

Applies to US in particular but would also apply to Germany/UK.

The idea that rising interest rates are always bad for REITs may need another look.

Something that Wayne McCurrie doesn't seem to understand.

Thanks. Even though me TEX position has taken a HUGE knock over the last month I have no intention of selling. Who is Wayne McCurrie by the way?
Logged

Moonraker

  • Hero Member
  • *****
  • Posts: 1095
  • Karma: +31/-0
    • View Profile
Re: Income from REITS
« Reply #21 on: December 06, 2015, 08:37:42 am »
Quote from: Fawkes85 on December 05, 2015, 08:35:00 pm

Thanks. Even though me TEX position has taken a HUGE knock over the last month I have no intention of selling. Who is Wayne McCurrie by the way?

He is from Momentum Wealth Portfolio Management and features regularly on Business Day TV's Stock Watch.
Stock Watch
Logged
Pages: 1 [2]
« previous next »