Are REITs Redeemable?

Real estate investors can choose to buy investment properties directly or place their money into a real estate fund. If you're interested in real estate investing but want to add even more diversification to your portfolio, you could also consider investing in a real estate investment trust (REIT). These are companies that are designed specifically to own and operate real estate that generates income. While REITs are often considered alternative investments, you may be wondering if this type of investment is redeemable. Here's a closer look at what REITs are and if they can be redeemed.

Are REITs Required to Pay Dividends?

Investors evaluating options in real estate have ample choices. They can buy property directly and either manage it or use a property manager. They can collaborate with other investors through tenancy-in-common structures or crowdfunding syndications. Or they can invest in a Real Estate Investment Trust (REIT).

How Can I Invest In REITs?

Real Estate Investment Trusts (REITs) have a singular purpose. Specifically, they allow you, the investor, to invest in real estate without having to buy or finance your own properties. In fact, they were created for that very purpose; in 1960, Pres. Dwight D Eisenhower signed legislation that created REITs, thus opening real estate investment to regular Americans.

How Do REITs Perform in a Bear Market?

When investors discuss the stock market, they may use terms like “trading,” “bear market,” “bull market,” “correction,” “volatility,” and more. So if you participate in the market, aspire to, or just want to keep up with current economic conditions, it’s a good idea to develop your knowledge of how the market works.

How Do Rising Interest Rates Affect REITs?

Real Estate Investment Trusts continue to show sustained popularity with investors seeking income and returns. In fact, the Wall Street Journal reports that the funds managed more than $224 billion by the end of 2021. Among the motivations for shareholders are the desire to own commercial real estate, the pursuit of truly passive income, and returns that have often outpaced increases in the cost of living. Some investors who have held real estate and managed it actively prefer to transition to REIT participation as a way to maintain their real estate involvement without the need to remain involved with tenants directly.

Are REITs a Safe Investment for Retirement?

Investing for retirement is a vital topic for many people since they may be seeking to accumulate wealth or grow income in advance of their future retirement plans. However, since greater rewards typically involve accepting higher risks, investors must calculate their risk appetite and tolerance, which change over time.