subject: REITs - A Viable Option to Traditional Real Estate Investment [print this page] REITs - A Viable Option to Traditional Real Estate Investment
Yet another advantage of investing in REITs is that the dividends are very likely to rise over time. Between the appreciation of the properties already owned by the REIT company and the new investment properties they acquire, an investor is almost guaranteed a regular increase in dividends. One should be sure to ask the broker if a potential REIT company is regularly acquiring new property; the optimal choice of an REIT company will have a regular purchasing schedule.
There are a lot of potential real estate investors that consider investing in REITs through mutual funds. This approach has its pros and its cons. The positive side is that it allows an investor to invest in a variety of different types of properties; the negative side is that mutual funds have certain costs associated with them that take away from the income they generate.
