Although many areas of the country are experiencing a double dip in their real estate markets, real estate investment trusts (REITs) are still paying returns. In fact, several years ago when prices started to fall, REITs were actually one of the few sectors that continued to pay dividends thanks to their ability to buy at rock-bottom prices, take advantage of low interest rates and continue to pay dividends. And one of the most attractive things about an REIT investment? They are required to distribute at least 90 percent of their taxable income to shareholders.
Of course, not all REITs have fared equally well in the past few years. Two favorite sectors of investment are in health care facilities and multifamily housing. These two sectors of the commercial market offer many opportunities for well-funded REITs to purchase “trophy” properties at low prices, then immediately start producing dividends as the demand for such properties is on the rise.
Are you putting your money in REITs?
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