Thinking about investing in real estate? Real estate investing can be profitable if you know what you're doing. It can also be full of headaches. Many tenants suck, so it's a gamble. Even if all goes well, real estate investing certainly isn't passive.
Personally, I prefer the lazy route. Plenty of well-diversified and professionally managed real estate investment trusts (REITs) are trading on the TSX with very attractive yields. In fact, the average yield on all 36 TSX-listed REITs is 7.93% (as at August 19, 2020).
Of course, there are risks. REIT yields have risen recently as many forms of real estate (office, retail, residential) are under pressure and the future is unclear. Some REITs may cut their dividend so it's best to do your due diligence. I am not speculating on whether real estate is a good or bad investment. I'm simply saying there are options available for the lazy investor (like me) who wishes to participate in the asset class but doesn't want to become a landlord.
Below, I've provided the full list of TSX-listed REITs and their yields (source).
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