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Updated over 8 years ago, 04/08/2016
Does this passive RE investment perform better than most?
Above is the 10 year chart for publically traded Reit OHI. I mention publically traded as these are highly regulated to protect investors mostly. Private Reits are another subject and have many disadvantages as compared.
OHI specializes in NNN senior housing facilities. What that means is they own the buildings and have long term leases to the operators. NNN also means they don't pay property taxes, insurance or maintenance on those properties. Needless to say this niche offers a strong forecast for the future. (Aging population)
Over the life of this Reit the returns are around 6% in dividends with 6% annual equity growth so around 12% total return annually. There are no expenses associated, no time is required, no phones calls etc for the investor. You simply click a button to buy and click to exit or sell any portion. Your investment could be in any amount from $100 to millions. Personally I really like that flexibilty.
This REIT also paid out during the GFC and did not lower the dividend as many others were forced to or suspend all together. This was mainly due to the niche they are in. It is not like vacancies are a big problem like with certain commercial and residential properties will experience during downturns or cycles.
I have not found any equal passive investment that performs like this. That does not mean that is not out there. There are so many ways to invest passively these days.
My question to bpers is can you find a passive real estate type investment with same passivity, returns, risk and or better? If you do know of one or two that fit could you also include how or why.
Thoughts or comments?