A listed fund that invests in real estate
A REIT uses pooled money to own offices, shopping centres and other property, passing the rent on to investors. Listed REITs trade like shares. Because they distribute most of their income, yields tend to be high, but they move with the property market and with interest rates. They buy buildings with borrowed money, so rising rates raise their costs.
A REIT yielding 4% pays about $400 a year on a $10,000 holding.
For learning, not investment advice. Decisions are your own.
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