Once tax and regulatory details are ironed out, Britain and Germany will become the newest markets for real estate investment trusts. By late this year or in 2007, they'll join Australia, France, Hong Kong and Japan among major countries that have recently authorized REITs. The first Israeli REIT opened in January. Indian developers want the government to create REITs there.
REITs trade like stocks and pass through dividends from apartments, shopping centers, offices and other properties. U.S. REITs have returned an average of 20% annually for the past five years and 16% for the past ten, easily outpacing the broad stock indexes and also paying a higher yield than bonds and bank savings. Overseas real estate markets are also healthy. Typically, foreign REITs are patterned after the U.S. kind, which must pay 90% of the trust's income as a dividend. The best way to sample these new REITs is via global and real estate mutual funds -- whose horizons just got a little broader.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
-
Stock Market Today: Stocks Run Out of Steam Ahead of Meta EarningsThe Dow Jones Industrial Average snapped a four-day winning streak after Boeing's first-quarter results.
-
One-Third of Parents Are Paying An Adult Child's House Down Payment? Are You?As housing costs soar, Gen Z and Millennial home buyers are turning to family for help with down payments.
-
Best Banks for High-Net-Worth Clientswealth management Kiplinger's 2023 list of the best banks for higher-net-worth clients.
-
Stock Market Holidays in 2024: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Take a look at which days the NYSE, Nasdaq and bond markets are off in 2024.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? It's true the stock market does have regular hours, but trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
I-Bond Rate Is 5.27% for Next Six MonthsInvesting for Income I-Bonds issued November 1, 2023 through April 30, 2024 will have a rate of 5.27%.
-
What Are I-Bonds?savings bonds Inflation has made Series I savings bonds enormously popular with risk-averse investors. So how do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
