Meet Doug Rowat, who joins us as a guest blogger, as did Ryan Lewenza, whom you eviscerated last week. Like Ryan, Doug’s a Portfolio Manager with the financial practice I founded, Turner Investments, where he shares responsibility for managing almost half a billion dollars. A cool Bay Street dude, Doug’s been a Vice President in charge of research and strategy for Raymond James, plus a highly successful fund manager at HSBC Securities, where he worked for a decade. As with Ryan, he has a swollen opinion of himself after garnering the attention of the Wall Street Journal, BNN, the Globe, FP and his adoring family. That may soon be cured.
I suppose my good friend Ryan played Ned Beatty last week, which makes me Jon Voight this week. In other words, I’m the next guy in line for a potentially rough ride.
I’ve been in finance for about 17 years with a good chunk of this time spent as a portfolio manager. But I’m thinking this personal detail matters little. It’s like opening up to Hannibal Lecter. Why share with someone who’s planning to eat you alive?
So, on to my first blog post. I decided it would be appropriate to focus on real estate, but not the kind that typically gets dumped on here, namely Vancouver and Toronto housing. Rather, the better kind: real estate investment trusts, or REITs. Like the Vancouver and Toronto housing markets, REITs have been great long-term performers, but if positioned correctly within a balanced, diversified portfolio they create far less risk and financial hazard.
For the uninitiated, REITs are simply ‘trusts’—basically a type of security that receives special tax treatment—with assets focused on real estate. These assets could be an apartment complex where some of you may live or the shopping mall next door. Hotels, industrial parks and office properties also fall under the REIT umbrella. As trusts, REITs must, by law, distribute most of their income to investors, which makes REITs ideal for investors seeking income.
So why do we like them?
First, they’re diversified. Unlike an overvalued shack in Vancouver, which likely focusses the bulk of your net worth on a single asset in one location, a broad-based REIT ETF can distribute your real estate exposure across the entire country and throughout many sub-sectors of the real estate industry.
That Vancouver shack is not going to give you exposure to shopping malls, for example. And shopping malls can be good investments usually anchored by rock-solid, blue-chip tenants such as Wal-Mart, Canadian Tire or Loblaw. Vancouver shacks tend to be anchored more by unicorns and pixie dust.
Secondly, REIT yields are exceptionally attractive. REITs currently yield in the neighborhood of 5%. While safe, Government of Canada bond yields are essentially worthless: the Government of Canada 10-year bond, as an example, yields 1.1%, well below our current inflation rate of 1.5%. And those bond coupons aren’t going to be increased. REITs on the other hand raise distributions regularly.
Over the past three years, REITs have bumped distributions nearly 4% annually.
Not spectacular, but more than twice the rate of inflation. And these distributions are handy when markets are weak as REITs are still working for you, spitting off steady income. That new shack in Vancouver, if chosen as your principal residence, is not providing you with any cash flow whatsoever. Further, in all likelihood, REITs will provide more than just their yield.
Overall returns, including capital gains, could be very attractive. Below are the annualized total returns for Canadian REITs this decade and last. Total returns include distributions.
REITs are not without their warts. Tenants have been leaving Alberta offices faster than babies at a Trump rally and higher interest rates are on the horizon. However, the energy sector has shown signs of life this year and interest-rate risk for REITs is overblown. In fact, often REITs simply shrug off rising rates. We saw this from 2004 to 2007 when the Bank of Canada raised interest rates 10 times and REITs still returned 18% annually. However, we understand that REITs are not risk-free and we currently recommend only a 5–6% weighting in our client portfolios—significant enough to benefit from the upside, but also low enough to limit the volatility. Sound sensible?
Now over to you. Be gentle.
151 comments ↓
First
Gold
Great post! I am enjoying the finance specific Saturdays, keep it up team Garth.
Ryan? Is that you, buddy? You’re fired. — Garth
Stupid article. Period
Everybody’s talking at me
I don’t hear a word they’re saying
Only the echoes of my mind
https://www.youtube.com/watch?v=1tqxzWdKKu8
5% to 6% weighted balance in a portfolio is not very encouraging so you need to explain an apparent contradiction in my play book. No it does not sound sensible in context of your entire essay.
Whatever you do don't look at those CAN REITs returns in USD terms.
Well, third paragraph, Hannibal Lechter, a favorite lunch and bar companion. A bit further a reference to a Vancouver shack. Trump even gets swiped!! GREAT!!
Good explanation of REIT diversification, and past performances both interest on investment, as well as capital appreciation.
Then, a competent explanation that REIT’s can have warts, too as in demand shift (Alberta office properties)
as well as in a rising rate environment.
Humor, competent explanations of benefits as well as their achilles’ heel. Well Done!
Here, I admit to my bias. As a lowly American, who self-managaes his pile of nickels, I find I am holding almost twice your allocation of REIT’s in my portfolio.
Not maple. So far, so good. There is a small slice of int’l REIT’s in there, too.
Yes, understand the risks. Bonds suck for interest, preferreds are better. Overall portfolio if 62/37/1% cash.
2016 has been pretty kindly thus far… yet it’s not over til the Dec 31st close.
Decent first effort, Doug. You and Ryan are both keepers!!
Your last line could have been deleted, we will always treat you as we read you! Mr. Wonderful or pond scum, just like the proprietor, groveling will get you nowhere.
M64WI
RETARD (Oops, I mean Greater Fool) American rushed to beat 15% crash tax to buy Vancouver Condo in CASH, as an ‘investment’ / a pad for his daughter to attend UBC. Classic buy high sell low strategy (face palm!). Reeeeal Smart.
http://www.theprovince.com/news/local+news/california+family+rushes+through+home+purchase+before+foreign/12106927/story.html
Very good post Doug. Thanks for the sound advice.
On the subject of PIGS.. several of them got creamed by over heated RE… Canuckistan.. do you really want to end up squealing…
welcome doug , good pitch
so what about tax angles on REIT’S
are there any good and legal angles to reduce taxes,on income from this investment vehicle?
Great first article. I agree that REITs can be good investments, though not all REITs are created equal. Some skimp on needed repairs and maintenance to keep their distributions high, which leads to a vicious cycle that limits value creation. Overall, though, if people buy a REIT ETF the better managed ones held by the ETF will outweigh the ones that simply look good on paper. Great advice.
What are your thoughts on mortgage REITs, by the way? Do you recommend people hold some as part of the fixed income portion of their portfolios.
Doug, if one places a lamb inside a REIT, will it stay silent, scream or get slaughtered?
@#3 Boring
Perhaps you’d like to enlighten us with YOUR exciting subjects?
Let me guess.
Investing in Belly button lint futures….?
No?
Recycled cardboard ETF’s?
No?
Sewer gas is the next “green” energy?
No?
Please enlighten us oh wise and fascinating life style cruiser…….but dont be boring.
Doug will throw you a soft ball for a needed home run as do tell. Do you rent your residence or do you own a home as your residence in the GTA?
Welcome Doug!
The second condo is now sold in lotusland, leaving us to live in the first condo- not an investment but somewhere to live. I feel lighter already!
So, REITs…I know Doug can’t recommend, but others can so…VNQ, XRE, other recommendations? My portfolio is light in this area so looking to add.
Good stuff. A welcome Saturday addition….. more investments discussions and less endless residential RE sure suits me.
There is only question though… Doug and Ryan – are you renters?? If not, did you sign an agreement that you will never violate this rule of 90 thing.. or else its hasta la vista baby for you two I imagine
What are the risks specific to REITs? Interest rates going up is a concern but that seems far off.
I’ve heard they’re not favorably taxed, so is this something that should sit in my TFSA?
Trump joke
Hannibal Lecter joke
Agreeable topic
Damn, no red meat here
You’re ruining our fun
It’s okay I see a puppy outside I can go kick
Can you send back the guy from last weekend
Yes, REITs, that hum along paying out distributions and ask nothing in return except patience. The time to buy these amazing investments was back in 2013 when they were ON SALE. I wonder how many of you commenters here were frantically scooping them up back then?
Poor Ryan. The victim of a ‘Ned Beatty Deliverance’ comparison. You do realize most on this blog are too young to make the connection. Garth makes it look so easy, doesn’t he? And he has been grinding out commentary 6 days a weeks for some years now.
The guy deserves a purple heart.
The oldest trick in the book. Unlike what was taught in school lessons, cheaters never win, apparently they do.
Central banks, governments, corporations etc. cut interest rates and manipulate interest rates, tax rates and tax policies by QE and bond buying, monopoly monetarists, monopoly governments and then say hey look, 4%, 5%, 6% can be made over here, REIT’s, dividend paying stocks, ETF’s, corporate bonds, high yield junk bonds etc.
Then they create asset bubbles, overvalued stocks, bonds, REIT’s, physical real estate, other investments and economic, financial, crises and blame it on investors taking too much risk because they don’t want to get 1%, 2% or even -1% etc.
It looks like many in power believe most people are born yesterday and not that intelligent so this is the world of negative consequences they have created not by the population at large.
We all know the powers at be will create more poverty and dependence on government through more and more social programs and other policies. This is the way they like it.
#125 – A Box in the Sky – Keep telling yourselves how brilliant you are while your returns suffer.”
Suffer? Schiff’s strategy is killing it this year, and we’re just getting started.
Anyone who believes an economy growing at 1% after 8 years of 0% interest rates and trillions in QE is BOOOOMING is a deluded fool. That includes you, JP, the American and anyone else calling for rate hikes this year or next.
The next Fed move is a cut, get ready to blame it on the weather, or China, or Brexit, anything but the flaws inherent to central banking.
#1 Jimmy on 08.06.16 at 3:05 pm
“First”
Gold
====================================
Jimmy, I believe this a record for you ?
Reits – “So why do we like them?”
=====================================
Totally agree with you. Holding 10.47% of them.
# 17 Western Woman
I am no one to give unsolicited advice – but you asked.
When Garth recommended it was a good time to look at preferreds and REITS (2014?), I listened. What I didn’t follow was his advice to derive diversity throught Etf’s. I looked at/followed Callaway ( now SmartREIT- SRU.to) and Dundee (now DreamREIT- D-un.to) for a few weeks, did a little reading. I liked that SmartReit malls were anchored primarily by Walmart stores and that they were looking to branch into Premium outlets in To/Mtl. It has been a monthly divvy cash machine (just raised to 14/share) and a capital appreciation of over 50%. I have trimmed my position twice (my dough redeployed, house dough riding). Yes Garth, Doug, Ryan…I’ll sell and reposition in an ETF. But which one?
The energy sector has shown signs of life this year? Would you care to expand upon this revelation for us all and gives us some context? Even a dead man with a pulse shows signs of life. Please educate me about the energy sector as am missing something in the equation as stupid is my middle name.
So Doug. This blog has been against buying a house forn8 years. How long have you? When did you buy real estate last?
Wrong (and you know it). This blog has advocated against putting the bulk of your net worth in any one asset, including a house. It’s all about balance. Stop baiting the new guy. He hasn’t even found the can yet. — Garth
#12 paulo on 08.06.16 at 3:46 pm
welcome doug , good pitch
so what about tax angles on REIT’S
are there any good and legal angles to reduce taxes,on income from this investment vehicle?
——
Tax-wise, REIT distributions are a blend of everything and the kitchen sink (return of capital, income, etc.). Remember also that they’re distributions, not dividends, so no divvy tax credit. However, as you can see by the chart above there’s a big capital gains component. As cap gains aren’t taxed in a TFSA, this is definitely a good spot for them.
#13 Blog Dog Joe on 08.06.16 at 3:52 pm
What are your thoughts on mortgage REITs, by the way? Do you recommend people hold some as part of the fixed income portion of their portfolios.
——-
Not enough transparency with mortgage REITs and definitely interest rate risk here. We prefer the ‘hard assets’ of regular REITs.
#14 Victor V on 08.06.16 at 3:53 pm
Doug, if one places a lamb inside a REIT, will it stay silent, scream or get slaughtered?
—–
Make more money than the other lambs, I expect.
This article is boring as watching paint dry. I guess they didn’t teach charisma in Economics school.
Let me give you a tip, junior. Here at GreaterFool, we, the unwashed and soiled masses, do not care about facts or informative posts – we want JUICY HYPERBOLE baby!
So when you sit down in your little home office on Saturday, August 20th, to write your next little blog entry, think to yourself “What would Garth do?” and then DOUBLE IT! Tell us stories of other bubbles crashing around the world… how blood ran through the streets… how families were ruined… how people lost everything. That’s what we want to hear.
Stop trying to elevate yourself above us. Only once you lower yourself down to our level will you truly be worthy of posting in this blog.
1. REITs use leverage to get those returns, sometimes lots of leverage.
2. Because online shopping is growing, shopping center tenants are hurting. More & more malls have increasing vacancy rates; empty shops don’t pay rent.
3. If Mr Turner is correct that a real estate correction is coming, what’s happening in Alberta will spread to other provinces.
I’ll skip REITs, thanks.
Was turned on years ago to REIT’s — even before they were fashionable.
Not so turned on by new dude (besides there is mention of a Rowat family and I am no house wrecker).
Definitely can confirm I am hot for silver (to match my preference for gold — the right kind of PM’s even if only your hairdresser knows for sure).
#116 Brazil ex-pat on 08.06.16 at 2:38 pm
And the censorship continues……
Do us both a favour, and leave. — Garth
++++++++++++++++++++++++++++++++++
Ryan…..welcome to the blog.
Garth….do the blog a favor and be Fair and Equal to everyone….
Sorry…..Doug…..warm welcome to the blog. Garth…same statement applies.
Just watched some more of Trumps latest adventures on video.
My god, are certain demograph of the American voting public really that stupid?
I guess maybe I can see the attraction….the Donald does kind of come across (and looks like) a red neck hillbilly.
Don’t know if it is a sign of desperation or stupidity or…?, but it is amazing the kind of mindless tribble some people will buy into…truly amazing.
Doug:
At what level of vacancy rates, new commercial starts and depressed GDP, would you suggest bailing from REITs?
Also, is there any reliable way to track the percentage of commercial properties held by speculators?
Doug get over yourself… Rates in Canada are going down baby.
IF REIT’s are so great, and have given such good returns, why only 5-7%??
Seems far too low, maybe 15% would be more consistent with this argument for REIT’s.
You should do a review of preferred’s. (Or perhaps a defense)
Everyone seems to say their great, but the returns seem weak, and horrid the past few years. And rates may go down! It seems hard to get a straight report on what the returns actually ARE.
#34 greyhound on 08.06.16 at 5:06 pm
“2. Because online shopping is growing, shopping center tenants are hurting. More & more malls have increasing vacancy rates; empty shops don’t pay rent.”
———————————————————-
Industrial Reits are available as well.
Do you think Amazon is shipping out of somebody’s basement ?
What’s with the REITs for noobz post? Fire this guy, Garth.
Welcome Doug. REITs are great! In February and March, several extremely good quality REITS were beaten down and oversold, with great fundamentals and multiples, fantastic yield, and BELOW book value…high quality real estate plus the management component for under cost. I made some purchases then and am extremely happy with the outcome. They are long term keepers and income generators.
Good to have an investment discussion. Expect many to be bored but many of us are willing to learn. I welcome a continued dialogue of investment topics on Saturday. One day out of seven to learn…six for Garth to entertain us. Good balance on the blog as well.
Serious question here, in no way meant as sarcastic or insulting.
What value do you suggest a “portfolio manager” actually adds?
Financial advisors (good ones) I totally get. Tax planning, estate planning, emotional counsel (stopping you from doing stupid things), even making sure your risk appetite is correct……these are all things I completely understand and value.
But specific portfolio allocation, down to the level of 6% this and 3.5% that? There seems ample evidence that this level of tinkering beyond the basic asset classes is basically useless.
http://mebfaber.com/2015/02/24/global-asset-allocation-a-survey-of-the-worlds-top-asset-allocation-strategies/
So what are your thoughts?
#41 Cecil Henry on 08.06.16 at 5:38 pm
IF REIT’s are so great, and have given such good returns, why only 5-7%??
Seems far too low, maybe 15% would be more consistent with this argument for REIT’s.
—-
I didn’t say they were perfect. And they’re equities, not fixed income, so they can be volatile. You also had to have a strong stomach to hold them through the credit crisis. A 5-6% weighting is just fine.
#38-46-Just once I would like a Trump critic to mention his opponent in a positive manner-it is like you are all ashamed of Crooked Hillary.
24 Mark M. on 08.06.16 at 4:37 pm
#125 – A Box in the Sky – Keep telling yourselves how brilliant you are while your returns suffer.”
Suffer? Schiff’s strategy is killing it this year, and we’re just getting started.
————-
Nice 7 month sample size. Anyone following Schiff for a full business cycle or any decent sample size ie. 5-10 years has been destroyed.
Please tell everyone – have you been heavily invested in gold and gold stocks the past 5+ years while the markets have gone up and gold has gotten murked?
#39 ILoveCharts on 08.06.16 at 5:16 pm
Doug:
At what level of vacancy rates, new commercial starts and depressed GDP, would you suggest bailing from REITs?
—–
Leases for REITs tend to be long term, so there’s less economic sensitivity and thus vacancy rates overall rarely plummet. We might adjust weightings if a crisis loomed, but REITs still spit out distributions in almost any economic environment. And we like them for the yield as much as anything.
REIT 5 or 6%
What if someone does not have a real Real Estate? does the % change?
What if anyone tries not to hold that much bond but transfers that to REIT (say 50% of Bonds goes to REIT for a 60/40 portfolio).
What if I start with 50/50 or 60/40 conservative portfolio and then make it more balanced/growth by taking some Bond into REIT?
where does REIT falls in a 60/40 portfolio? in the equity section or in the Fixed Income section? REIT by nature seems Fixed. However, with 60/40 portfolio -> somehow it seems falls into equity -> the example I tried to use (as I might have seen this as an example of 60/40 portfolio)
Pref: 20%
US:20%
International:20%
CDN:15%
Bond:20%
REIT:5%
or this actually is 55/45 portfolio?
#38 46 and 2
“My god are certain demography of the American voting public really that stupid?”
It would appear they are. How else does one gauge the ascent and sustainability of the ‘Donald.’ Myself, I was astounded the Republican party anointed the buffoon, but then, I astound fairly easily.
Further, while no fan of Hillary, each Hillary gaffe the ‘Donald’s’ cred rises in polls. It is going to be a VERY LONG four months til this circus parade is over!
Thankfully, we have Garth, Ryan, and Doug to keep our minds diverted into more enlightening pursuits.
How’s this for a raise. http://money.cnn.com/2016/08/05/news/companies/american-airlines-union-pay-raise/index.html American economy must be getting better .
Boo!
(Foreign money, YVR).
Did that scare you? You acknowledge it for credibility sake?
To the portfolio manager:
Would you make the 5% allocation fully in a Canadian REIT or a global REIT?
you choose
bib or suit shirt and tie
college streetcar west to Clinton,walk south
san Francesco foods…the original
the largest sloppiest tastiest pizza slice from southern Italy.
actually the pizza across the street is better,from northern italy
out to lunch
millenials thrive here now,these are your future gamers
no napkin for your pizza slice
pick anyone there, aplenty and explain a reit
Welcome aboard, Doug, I like REIT, and that’s exactly what I think about them. Garth, you do bring some good beefcakes. Any more? Maybe one per week on rotation through out the year and you just monitor the comment section.
#52 BOOM! on 08.06.16 at 6:26 pm
#38 46 and 2
“My god are certain demography of the American voting public really that stupid?”
It would appear they are. How else does one gauge the ascent and sustainability of the ‘Donald.’ Myself, I was astounded the Republican party anointed the buffoon, but then, I astound fairly easily.
Further, while no fan of Hillary, each Hillary gaffe the ‘Donald’s’ cred rises in polls. It is going to be a VERY LONG four months til this circus parade is over!
Thankfully, we have Garth, Ryan, and Doug to keep our minds diverted into more enlightening pursuits.
..
Well the teabaggers are crazier than the trumpeters … And the trumpeters took them out so look on the bright side!
Baha? First glance at his picture, struck me as a younger version of Blog Dog Carney.
Exhibit B:
http://www.bankofengland.co.uk/about/PublishingImages/biographies/carney.jpg
Praised by BNN ??
I thought Garth recommended reading anything but.
Doug, you’re too clean – need more facial hair bud: show some tats, grow long & shaggy, sexy like Gartho… then the herd might just follow you. 2% or 20% return.
Just look at Garth: hairy & grumpy wolf. Puppy face won’t get you far on here man.
Video killed the radio star.
USA malls are dying. With Amazon’s new Prime Air fleet (leased Boeing 767s) poking holes bricks, mortar – and clouds – the ballooning spending habit of the burgeoning bourgeois class beckons a new retail gravitas – which is hitting earth with thud.
Oldsters and wheezers will note malls’ anchors aweigh:
” Mall Landlords Welcome Medical Clinics As Retail Ails Article content
8/5/2016: As brick-and-mortar retailers struggle against online competition, mall landlords are welcoming tenants that trade in services, such as medical clinics…. health care service group for CBRE (CBG), says the idea of putting medical clinics in malls is one…
http://www.investors.com/news/real-estate/mall-landlords-welcome-medical-clinics-as-retail-continues-to-ail/
…
Btw Colliers stock picked up.
I bought some XRE some time ago, and has been satisfied with the returns so far (althought I sometimes wished I bought the cheaper VRE instead, or the more aggressive and volatile ZRE).
Now I’m contemplating adding US and international REITs to my portfolio. In Canada, I think the only available ETF for this sector is Blackrock’s CGR. Another alternative could be buying US ETF’s, but since the dividends would be issued in USD, I would have to pay hefty conversion fees to change them to CAD, so this does not sound appealing.
Would anyone share their thoughts about owning CGR in a RRSP, TFSA or unregistered account? Would dividends issued by US-based REIT’s be subject to a 15% witholding tax as any other US dividend?
Thx
… and higher interest rates are on the horizon.
_______________
Great first article except for this line. The next time you’re in the office and Garth offers you Kool-Aid politely decline. Apparently he’s putting something in it.
#55 A box in the sky on 08.06.16 at 6:45 pm
To the portfolio manager:
Would you make the 5% allocation fully in a Canadian REIT or a global REIT?
—-
We focus on Canada because we’re more familiar with this market, but REITs are a global investment. Japan has a robust REIT sector and REITs have been available in the US since the 1960s.
#34 greyhound on 08.06.16 at 5:06 pm
is correct. No Sam Zell here.
Doug, you mention risk in passing, but the reality is that these instruments are at all time high valuations where cap rates are at all time lows. Add some utility shares, a few telecoms, tell everyone they are diversified in “defensive” sectors and all will be fine. Central banks have pushed client’s to seek yield and you are accommodating and the prices of these asset classes are in the stratosphere.
Your competition are robo-advisors.
#6 Context on 08.06.16 at 3:39 pm
———————–
There’s obviously risk with REITs, hence the low weighting?
#36 Brazil ex-pat on 08.06.16 at 5:10 pm
———————-
Fair yes, but equal? That’s for the birds. Why be equal with a kook?
Suprised no one’s asked him this hallmark one:
Have you stopped bleating your strife?
You talk blue chip stocks what wrong with buying Walmart , Canadian tire etc…
I’m glad you call them distributions since most people don’t understand that REIT distributions are not the same as dividends. Explaining return of capital to people would likely be beneficial but, as usual, the words would fall on deaf ears so why bother.
I don’t like REITs
#66 Bottoms_Up: – Don’t ask me as Doug is the portfolio manger as am listening to the Carpenters “We’ve Just Begun”. He is afraid to answer my questions.
Doug,
You are an intelligent and reasonable man.
It’s a cruel joke on Garth’s part having you post on his pathetic blog, and subjecting you to the moronic commentary by the blog dogs. We are a bunch of egotistical narcissistic idiots. He must really love you.
(It reminds me of how Ricky Gervais treated Carl Pilkington by casting him in the show “An Idiot Abroad”.
(If you don’t know what I mean by this, Google it, and watch the show….you’ll then see what I mean.))
You, on the other hand, are smart, reasonable, logical, successful, practical, knowledgeable, and professional. The disgusting dreck of humanity posting their reprehensibly sad opinions in this comments section represent the polar opposite of what you are.
Thank you for your insightful inaugural post.
Since February of this year, I happened to have stacked my portfolio with individual REITs, as well as the ETF XRE, and have made out like a bandit. I don’t care if they go down at this point. I got in at the right time, and my dollars are like hundreds of thousands of employee slaves cranking out between 5% and 9% dividend income, while I sleep soundly. I have divested myself of my bricks and mortar real estate holdings over the past 6 months, realizing healthy capital gains, and am happy to say good riddance to the nightmare of dealing directly with scumbag tenants, maintenance, repairs, lowlife, and the rest of the shit that goes with holding actual real estate. I am now making more income by owning REITs, than when I owned the actual properties outright.
Thanks again for the great blog post.
Namaste.
At #53: Jay, let’s also not forget the recent pay raises across the board for ALL employees that was announced by JP Morgan Chase and Starbucks over the last month. The American economy is on fire right now. Just received my quarterly incentive payout. I’m quite happy to spend that six figure check.
#70 Cory
What’s your point? Dividends, distribution, income, whatever. Return of capital as a portion of income is not an inherently bad thing. There is no need to split hairs on this issue.
REITs have been stellar performers and income producers in 2016. If you wait until they are unrealistically devalued prior to buying them, you get the upside capital growth, along with the terrific income.
Long term, they are better than most fixed income investments.
#49 – Box in the Sky
Why is this so hard for you guys to understand? Even the Keynesian liars at the Fed actually know that the great US “recovery” is just another in an unending line of bubbles about to burst, which is why there are no rate hikes coming.
What will it take for you guys to figure it out? Endless talk about imminent rate hikes for years, we get a single 25 point hike, “liftoff” we were told by the cheerleaders here and then nothing more.
If the recent anemic GDP numbers haven’t made you reassess your buy in of this ridiculous “recovery” narrative, then you’re simply too far gone.
When September, November and December come without the promised rate hikes, please return and explain why each time. I’d also like to know why an economy with “full employment” and “really smart people” at the Fed requires 8 years of emergency measures?
When rates return to 5%, and the Fed unwinds the balance sheet then you can tell me Schiff is wrong. I suspect even you know that can’t happen, but wishful thinking and Garth worship is hard to overcome.
REITS have been the leading asset class in the US also since 2008 (ie VNQ).
Can one expect this to continue? VNQ has beat SPY, IWM, EEM, EFA, TLT, PFF, HYG, etc.
Do you think REITS will behave like bonds if the market shifts to “risk on” (ie sell off and underperform)?
Thanks.
Informative post.
Doug that was no typo but the farm boy in me coming out so must apologize. Hey just 17 years in finance you will improve in time as experience is everything.
XRE is one of the worst diversified ETF’s with 19.3% in one security RioCan which is dragging it’s value down. It’s yield is low relative to risk but I own some but but I own more individual names in that sector.
The sector diversity is little compared the ones in the USA market.
At the percentage you invest in it is almost meaningless so relative to return that can be gained.
There is value in return of capital but XRE does not capture much of that. So you are content on mediocre returns. REITS are also very sensitive to interest rate swings which you seem to under rate.
I cannot see you adding any value for the large management fees 1% of assets you extract.
There are so many ways to create a good portfolio with ETF’s but I prefer individual securities.
http://www.coffeehouseinvestor.com/coffeehouse-beans/coffeehouse-portfolios/
FLOP:
You O.K.??
ROWAT:
Good debut. You ever been to Fort McMurray? You should see it. There are REITS here. Apartments because there is only one mall.
Don’t come in December.
#48 Nelley
I’m not a critic, I just think the guy is an idiot. I think the one thing he loves is to hear himself talk.
Seriously, the man does not have a clue, in fact…”idiot” and “does not have a clue” and “loves to hear himself talk” reminds me of a certain Calgary mayor.
“Does not have a clue” is built into the NDP premiers DNA.
Don’t you just love politics…..what a f**king joke.
#64 Doug Rowat – We focus on Canada because we’re more familiar with this market, but REITs are a global investment.
I really don't understand the logic behind this investment strategy. Turner Investments is warning about Canadian household debt and you're advising clients to buy CAN REITs? Commercial CAN REITs will be the first shoe to drop if there's any turmoil in the credit markets. Why? Because banks will always advise/offer borrowers in default to restructure non-mortgage debt first (since mortgages back CMB/MBS/Covered Bond assets), effectively cutting off their borrowing power, in turn, spending less at retail outlets. You want to own a company whose tenants are vulnerable to lease payments? Not to mention the leasors themselves exposed to rising rates?
And by the time that even happens global hedge funds will be dumping CAN REITs. This is a global market that looks at Canadian companies in dollar terms. Once they see the loonie plummeting again they will sell off everything.
I have close to 80% in reits. Yes they are more volatile but even the NAREIT in US has destroyed the SPX over the last 60 years. I think their biggest advantage comes from the fact that MGMT can do less stupid things when they have to pay out 90% of their income.
Commercial REIT’s are cool because tenants are on their own for maintenance and improvements, compared to residential.
I wonder how long US REIT holders were underwater on their investment after the crash in 08, before they were back on earning street again?
That might be a pertinent part of this story what with the impending crash due yesterday according to this very site.
The world is looking for alternate investments to the stock market and of course for Canadians alternate investments to Canadian real estate that can only crash. I’ll be buying long term European bonds this November and plenty of gold and silver. Playing the U.S. dollar to tank and interest rates to turn negative. The only two stocks I own are Nvidia and AMD but have shifted most of the holding from Nvidia to AMD.
#23 Scott Franklin
Good post!
Re: #77 Moron Face on 08.06.16 at 9:07 pm
REITS in America should perform like high yield junk bonds “risk on”. Don’t think they won’t short REITS in America because of the yield, that only happens in Canada also because of the small floats in some of the Canadian REITS.
Re: #9 notatroll on 08.06.16 at 3:43 pm
History has shown buying just after a long term peak in prices generates the worst possible return over time usually negative even long term.
Does it really matter if you do 5% REITs or 10% REITs and 20% Preferreds and 15% Preferreds or a tiny bit more here and a tiny bit less there? At the end of the day I don’t think it does. The Key is to keep fees as LOW as possible. That means not paying extra expenses for someone to “manage” your portfolio. A 1% management fee for 10-40 years of management does add up. These articles are great for banter and entertainment and edutainment but after you learn the basics to get your license, do you still need to be paying a driving instructor for the next 40 years?
Rosie # 86,
#27 Blacksheep
“I’m not an American or a Trumpkin. But I can spot a con like Mr. Trumpkin 1.6km away. Too bad you Trumpkins never learned to spot BS salesmen. They sell religion, BMW’s, houses and false hopes. You do keep the economy going though so keep the faith suckers.”
—————————————–
Rosie….honey, you are so far of target with your profiling, it’s laughable.
Trump is an arrogant ignorant ass, who comes of as a prejudiced buffoon, that is a potential risk to the planet, given the keys to the empire. Yes he’s amassed significant wealth, but that’s only due to getting big seed cash from Daddy-O at a young age and being a ruthless lying capitalist, leaving a swath of lawsuits in his wake.
Hilary is the systemically approved corporate shill that’s on the Bush / Clinton rotation, it’s Jeb’s turn next. She specializes in prosecution avoidance and should be a Teflon scalpel for the systems desires. Despite her being in possession of a vagina, will test the limits of what the world will tolerate via the US military, all to display she has bigger balls than Bill.
There is NO, good choice….
So, why do I delude myself (electoral college will stop it), that Trump is a better option?
Because he’s NOT the systemic choice.
ANYBODY, that the system has NOT anointed, would be better than, more of the same.
Have a look at what’s really going on with the bottom half of the income earners in the US of A. Read some Thomas Jefferson and then you might get a clue, as to how I’m actually thinking.
#22 the Jaguar on 08.06.16 at 4:30 pm
Poor Ryan. The victim of a ‘Ned Beatty Deliverance’ comparison. You do realize most on this blog are too young to make the connection. Garth makes it look so easy, doesn’t he? And he has been grinding out commentary 6 days a weeks for some years now.
The guy deserves a purple heart.
*****************
I’m trying to forget that movie.
Welcome Doug. Thanks for the info on the REITS.
Good luck!
Doug,
I thought shopping malls were for old ladies walking clubs and selling Teslas?
Disruptive innovation, coming to a commercail space near you….
Last night hammered at Seneca. Tonight hammered in Sauble Beach. Tomorrow?,
Anyone’s guess.
Great post. Love my reits!
Anybody else see The Big Short on Netflix?
Reminded me Canada hasn’t had it’s ‘adjustment’ yet.
Apparently Hilliary says she ‘might have short circuited the truth about emails”.
And all MSM can do with news is prattle on about how (without mentioning their brand new polling methods) Hilliary is in the lead, for now. I predict a reality landslide coming for Trump.
Interesting you should pick this topic to blog about. I have recently squatted the opposite side of the creek under the bridge where I reside. I intend to launch a REIT myself for that area, after all the paper routes are becoming less profitable with all you people putting information on the internet for free.
Purchasing sea containers at auction, twenty footers and some forty foot models, I will be supplying housing for those who will soon default on their excessive mortgages. Additionally I am planning to purchase some fifty-three foot domestic containers to accommodates those with larger families or that simply still want to brag their home is the biggest in the neighbourhood.
So all in all a very timely post from my point of view.
#38 46 and 2 on 08.06.16 at 5:14 pm
Just watched some more of Trumps latest adventures on video.
My god, are certain demograph of the American voting public really that stupid?
I guess maybe I can see the attraction….the Donald does kind of come across (and looks like) a red neck hillbilly.
Don’t know if it is a sign of desperation or stupidity or…?, but it is amazing the kind of mindless tribble some people will buy into…truly amazing.
+++++++++++++++++++++++++++++++++++++
Clearly you have not watched:
Clinton Cash or
Exposing the Clinton Crime Family or
Hillary’s America or
How Evil is Hillary and Bill Clinton
Maybe try doing 5 minutes of research on the murderous drug and gun running thugs called “The Clintons” before you say how bad of a person Mr Donald Trump is.
Great job Doug! I liked the guest last week too.
Question- what’s a security? It’s always depressing when a definition just contains another foreign word…
Nice post Doug…you will get as unruly as Garth with a bit more experience with the blog peoples. Just remember: it’s easy to be tough when you don’t have a face to punch…as I say behind a pseudonym…
Interesting and informative post Doug. You must be wondering why you agreed to subject yourself to the turkeys of this largely uncensored comments section. Garth seems to both survive and thrive on the abuse after spending his formative years subjected to it as a journalist and politician but I am sure that enduring the boorish abuse with pleasure is not the norm for most people.
Welcome to the family Mr. Rowat! If you thought you knew your stuff you ain’t seen nothing yet :) The best defense around here is offense. Whenever the boss man hands over the reigns on the comments section you need to blast right back at the armchair quarterbacks in full confidence. Besides, it’s funny. All the best and I look forward to considering your advice!
Evaluating a REITs is far more involved than what is written here. Would exercise caution and keep it at an appropriate allocation in a diversified portfolio.
During and after the ‘Great Recession and Real Estate Collapse of 2008 -2012 big finance corps like Black Rock and Marriot were picking up hundreds of thousands of houses in the US from banks. The Shadow Inventory has been turned into rental income for those same companies.
Now another thing has happened, Millenials can no longer afford a house in Canada as all the stock is being sold to Chinese cash buyers with strong Yuan. I thinking that REITs with residential stock only will outperform commercial property REITs by a mile over the next cycle as young people become another generation of renters like thier grandparents were before the end of WW2. Any Thoughts?
PS, I absolutley have no faith in Modern Portfolio Theory as I fear it never keeps up with the inflation our BOC can’t / won’t admit to, so I pick solid stocks and ETFs to trade on the way up and buy good companies that have been overlooked.
So far this year I have beaten Black Rock and KKR by a mile with an average of 33% YTD with a portfolio of 45 stocks and other sweet treat. So please don’t preach back ‘balanced’, I need real money.
HAM is only a secret in Canada where its a sin to say.
But for the rest of the world, they’re laughing at us.
http://www.bloomberg.com/features/2016-vancouver-real-estate-market/
https://www.thestar.com/business/2016/08/05/as-gta-house-prices-rise-more-young-home-buyers-want-in.html
Yup, we’re screwed…
# 17 Western Woman
How about RIT.TO? It’s an ETF of REITs. Diversify your diversification.
If a large financial institution is charging a 1% fee or slightly less to manage a qualified portfolio, are they also charging additional non disclosed fees, trailer fees, and all of the other fees/bonuses gained from various MER that most clients are unaware of?
Or is the 1% annual fee all that is charged?
A fee-based advisor should not sell you anything with a commission attached, especially mutual funds. Other than some small embedded ETF fees (averaging about 0.3% over a portfolio), no extra charges. The overall management fee comes out of the accounts monthly, normally from growth – one-twelfth of one percent. This can also be tax-deductible. Mutual fund fees are not. — Garth
An informative piece for us financial illiterates. Thanks.
Rosie # 86,
#27 Blacksheep
“I’m not an American or a Trumpkin. But I can spot a con like Mr. Trumpkin 1.6km away. Too bad you Trumpkins never learned to spot BS salesmen. They sell religion, BMW’s, houses and false hopes. You do keep the economy going though so keep the faith suckers.”
—————————————–
Rosie….honey, you are so far of target with your profiling, it’s laughable.
Trump is an arrogant ignorant ass, who comes of as a prejudiced buffoon, that is a potential risk to the planet, given the keys to the empire. Yes he’s amassed significant wealth, but that’s only due to getting big seed cash from Daddy-O at a young age and being a ruthless lying capitalist, leaving a swath of lawsuits in his wake.
Hilary is the systemically approved corporate shill that’s on the Bush / Clinton rotation, it’s Jeb’s turn next. She specializes in prosecution avoidance and should be a Teflon scalpel for the systems desires. Despite her being in possession of a vagina, will test the limits of what the world will tolerate via the US military, all to display she has bigger balls than Bill.
There is NO, good choice….
So, why do I delude myself (electoral college will stop it), that Trump is a better option?
Because he’s NOT the systemic choice.
ANYBODY, that the system has NOT anointed, would be better than, more of the same.
Have a look at what’s really going on with the bottom half of the income earners in the US of A. Read some Thomas Jefferson and then you might get a clue, as to how I’m actually thinking.
—
Oh he’s most definitely part of the system, as evidenced by his VP pick and the spineless Republicans endorsing him. It’s a simple quid pro quo. He gets to win, and the rest of them get to do what they want with executive sign-off. If anything there would be less accountability and transparency if he got in. Good thing he won’t.
Double double in the Philippines
http://www.canadianinquirer.net/2016/07/28/double-double-philippines-tim-hortons-plans-southeast-asia-expansion/
tims franchises available? or all corporate?
ps, follow up on mcdonalds self order checkout
needed to be in Mississauga last week briefly.
decided to stop at a mcd”s to grab a quick sandwich
went inside
believe it was Bristol circle
busy and there was a line up for the self serve order and pay (just one) the other option was a single cash register.
in both options you receive a number for your order.then you have to walk to the other side of the store and wait with all the other people who had numbers.by the time my number was called..it took about 15 minutes from the time I entered the store
as I learned later this mcd corporate pet project and this particular store is the model for all future mcd stores.
it is also the (a) training store for mcd employees in the new order process
#82 Aggregator
This is a global market that looks at Canadian companies in dollar terms. Once they see the loonie plummeting again they will sell off everything.
==
+1
#90 Blacksheep
Rome was a republic until it became an empire, then it became a dictatorship. The U.S. was a republic until it became an empire. It still pretends to be a republic but is really a kind of dictatorship. It’s unavoidable. As for Hilary being a woman, so what, you answered your own question. Trumpkin will fall into line, he has no choice, just watch and listen. He’ll sound like all the rest soon enough. As to how your thinking, you are just naive. There is too much at stake to let a bunch of bumpkins take charge. The bottom half still live larger than 90% of the rest of the world.
#98 Brazil ex-pat
I have no doubt Clinton is dirty….they are ALL dirty in one form or another. Trump has a long history of business failures, bankruptcies, lies…etc.
Just another mouth piece surrounded by lawyers.
All I am saying is Trump is a buffoon, idiot. More than half the time he doesn’t think or know what he is talking about, he is just talking.
Basically a egotistical charlatan dancing around a fire, captivating an audience of gun toting protectionists that actually believe he can make a difference.
I think he is in the whole thing for personal gain, nothing more, nothing less.
#101 Musty Basement Dweller on 08.07.16 at 1:07 am
Interesting and informative post Doug. You must be wondering why you agreed to subject yourself to the turkeys of this largely uncensored comments section. Garth seems to both survive and thrive on the abuse after spending his formative years subjected to it as a journalist and politician but I am sure that enduring the boorish abuse with pleasure is not the norm for most people.
—-
Thank you. And my skin’s a bit thicker this morning. A few more months of this and I’ll be Iron Man.
Clinton is now leading in Georgia. F$&&ing Georgia!
Trump is going doooooooooooowwn!
Wheeeeeeeewwwwww!!
Thank you. And my skin’s a bit thicker this morning. A few more months of this and I’ll be Iron Man.
————————————————————-
That’s funny! Your comment made me laugh and got my day going on the right foot. I read this blog regularly to learn about economics and managing money and have learned a lot over the years. That’s an absolute necessity for someone like me who failed a college financial course many years ago.
One thing I notice (hard not to notice) is a lot of negativity and criticism in the comments section. Personally I believe it makes more sense to read and take the free advice here to get better returns from my portfolio rather than use my valuable time and energy to bitch and complain about all that’s wrong with society. One blog that’s quite different is http://www.mrmoneymustache.com. In that blog the comments are more positive, where commenters actually say things like: thanks for the valuable tips, I’m going to try what worked for you! I don’t know why the difference, maybe Canadians just like to complain a lot.
2 new part time jobs added to The Greater Fool this month
#117 The other Doug, in London on 08.07.16 at 10:40 am
Thank you. And my skin’s a bit thicker this morning. A few more months of this and I’ll be Iron Man.
————————————————————-
That’s funny! Your comment made me laugh and got my day going on the right foot. I read this blog regularly to learn about economics and managing money and have learned a lot over the years. That’s an absolute necessity for someone like me who failed a college financial course many years ago.
One thing I notice (hard not to notice) is a lot of negativity and criticism in the comments section. Personally I believe it makes more sense to read and take the free advice here to get better returns from my portfolio rather than use my valuable time and energy to bitch and complain about all that’s wrong with society. One blog that’s quite different is http://www.mrmoneymustache.com. In that blog the comments are more positive, where commenters actually say things like: thanks for the valuable tips, I’m going to try what worked for you! I don’t know why the difference, maybe Canadians just like to complain a lot.
==
Well you may have noticed the host likes to refer to the wise members of the steerage sections as losers, wimps, idiots, fools, dumbasses and peckerheads….
So it is seems a healthy give and take, no!? All in good fun… most financial writing is stupefyingly boring… he knows what brings in the hoards.
#116 Moron Face on 08.07.16 at 10:34 am
Clinton is now leading in Georgia. F$&&ing Georgia!
Trump is going doooooooooooowwn!
———————————–
http://www.reuters.com/article/us-usa-election-poll-idUSKCN10G2BQ
#120AB-what these polls miss is that picking up the phone is a lot easier than actually voting-I can’t see many Bernie Sanders voters bothering with this election-no matter what they say on the telephone. Bernie’s supporters are a lot more idealistic than Bernie himself.
REITs, specially mortgage REITs look fabulous in an environment of shrinking (e.g. look at the long term treasury yields), not increasing interest rates.
Call options on REM., targeting 11.00 (currently at 10.81), at the cost of 0.05 at the end of September 2016 look like a good bet.
AB Boxster
Visit realclearpolitics.com
Real Estate Council of B.C. requires photo ID for applications after deception
Can anyone name one licensed profession that doesn't require you to legally verify who you are and where you live? Unbelievable. Stories like this is what tells me there's a lot more to Van's bubble story.
Bay Street guy and cool cannot be used in the same sentence. Good advice though.
#89 Lowell Rustly
“These articles are great for banter and entertainment and edutainment but after you learn the basics to get your license, do you still need to be paying a driving instructor for the next 40 years?”
———————————
You miss the point entirely. You are not paying someone to keep teaching you to drive. You are paying someone to actually do the driving. That’s because even though you may be able to drive yourself, you have better things to do with your time.
It’s an ongoing service, like car maintenance. I once worked on my own vehicles. Then two things happened. Vehicles became much more complex and I became much less inclined to bend over an open hood.
I pay 1% to my financial advisors so I can get on with more enjoyable pursuits. It’s a bargain.
Did Doug the portfolio manager leave the building as have a REIT question for him? He will undoubtedly have it in portfolio and know all about it so his answer will be forthcoming. I wonder if he can come up with the right answer and if not will correct him.
#122 Sheane only the ill informed or degenerate of gamblers would buy any option with expiry under three months.
Damifino on 08.07.16 at 12:22 pm
You miss the point entirely. You are not paying someone to keep teaching you to drive. You are paying someone to actually do the driving.
It’s an ongoing service, like car maintenance. I once worked on my own vehicles. Then two things happened. Vehicles became much more complex and I became much less inclined to bend over an open hood.
===========================
Oh no! We’re not going to get Garth upset again by talking about doing our own brakes… are we?
That does remind me that I need to change out the rear pads on the ol’ Toyota. They make an annoying sound sometimes. Front ones are already done. Expensive little puppies too.
The REIT Tax Advantage Elephant In the Room
“For the uninitiated, REITs are simply ‘trusts’—basically a type of security that receives special tax treatment”
***************************************
And just why do they receive special tax treatment and why should they?
In almost 30 years of investing I have never seen a sensible answer to this. What I see is blather that REITs are a passive investment so therefore the tax situation ought to flow through to the unit holders.
It makes no sense.
I mean is the government actually trying to encourage the spread of strip malls and the like? Of office space in Calgary?
Income Trusts had no real reason to be exempt from corporate taxes and that was fixed.
Maybe the lack of corporate taxes on REITs will be eliminated (that is fixed) at some point.
I’m just saying there is no excuse for the favorable taxation of REITs and it could be eliminated at some point.
Guys with everything inside fully-taxable RRSPs get bitter, I guess. — Garth
The worst post ever on this barren tundra of financial confidence hidden behind a veil of “drunk uncle” humour.
Looks like you’ll be a welcomed addition to this blog.
Rather Than REITs
Having said the above I don’t think REITS are a bad investment at all.
Certainly they have done fantastically well in the past.
It still bothers the accountant in me though that don’t consider that buildings depreciate and they distribute ALL cash even over and above taxable income. But so far that has worked. And you have to bother with the taxation issue of return of capital if in a taxable account. It seems a bit too much like work.
Any how…
What about Restaurant Royalty units?
I have recommended those here in the past. Specifically Boston Pizza which has soared these last few months.
But I like it for the long term. It’s a predictable 6% or more that will grow slowly over time with restaurant price inflation. With BP you own a share of the franchise fee. Your only risk is that same-store food sales might go down. And how much might they go down realistically? I see little risk to the distribution.
The units could decline if interest rates rise but the distribution would still be there. The timing for BP might not be the best right now due to the recent sharp increases.
Quebec’s rental board has ruled a Verdun landlord has the right to change the locks on a tenant to stop him from renting out his apartment every night in a decision that could have consequences for other Airbnb users in the province.
This tenant was fully booked and wasn’t even living there as was renting in the dark making a fortune and in Toronto this is being done everywhere; not to mention the thousands of cottages in Toronto’s vast cottage country. Of course am sure all this cash money is being declared to the taxman and with technology there are other methods. I am still available as a part-time consultant for the taxman.
Fully Taxable RRPS?
Guys with everything inside fully-taxable RRSPs get bitter, I guess. — Garth
*****************************************
The tax on my RRSPs will be simply a return of the 40% or share that the government put in via the refund at the outset. My 60% share will have grown completely tax free assuming my marginal tax rate is unchanged. You know that intellectually, I think.
Also I now have about a third of my portfolio in taxable accounts as I ran out of RRSP and TSFA room.
Some of us, despite being people who are showered with tax advantages compared to say the lower middle class can recognise that we are getting many tax breaks at the expense of someone else.
The guy raising two kids on 60k or a family income of 85k who has no money left for TSFA and REITs or even RRSP is subsidising those who can take advantage of these tax breaks and that is a mathematical fact is it not? Maybe he will be able to use the tax breaks someday. But TODAY his kids are going without to subsidise our tax breaks, is that not a fact?
#119 Steerage Wisdom
Mr. Moneymustache is a former Canadian who emigrated to the U.S.
I enjoy his column, as well. As for the complainypants quotient of his columns verses what we find here, I see little difference.
What differences there might be, is he probably has a younger demographic, perhaps more motivated to be financially independent, and more motivated to “do it yourself.”
Us blog dogs appear to be older, and probably less tolerant of differing opinions, in greater need of thirsty underwear, and more financially secure. Naturally, that fails to cover ‘everybody’ here, but an older demographic.
The Quebec rental board should have notified the tax authorities to make a faux booking. There was a ring involved that may have included dozens in this operation. Someone had to give out the key for these bookings and cleaning had to be done for the next night. The person involved could have been arrested or detained for questioning and out of fear told all. This tenant wasn’t even living in Canada.
Garth, this guy (Doug) is trying to sound like you. Please make him stop. Thank you.
Good article Doug. Much more interesting than last Saturday’s snooze-fest. “Tenants have been leaving Alberta offices faster than babies at a Trump rally…” hehe… nice. Finance mixed with a little fun is always a good thing. Thanks for that.
I own and/or follow these REITs. Some have about 7-8% yields.
AX.UN
NWH.UN
AP.UN
CUF.UN
MST.UN
D.UN
ZRE
BEI.UN
REI.UN
HR.UN
NVU.UN
Keep up the good writing Doug and you may end up inheriting this Godforsaken blog one day when Garth is pinching nurse behinds at the old folks home.
#133 Context.
I am still available as a part-time consultant for the taxman.
Count me in, too. Revenue Canada needs the help of good people. All these people renting places nightly in just the beginning of anarchy. It’s uncivilized behavior. There is something sleazy about it. Next thing these people will do is rent out their grandmothers. Disgusting.
Doug, any portfolio manager could see that XRE was an obvious buy in February and bought me some at $14.38. Is it now a buy, hold, or sell? Do tell me why with details please.
Clinton has a solid lead in the majority of the battleground states.
#139 the Jaguar – This country is going to hell with spending our tax dollars. I for one pay my legal taxes and have nothing illegal in my play book so have no fear of the taxman. Forget the little guy cheating a few dollars on occasion as its not material. There is an underground being supported with technology that might be bigger than anyone can guess with massive amounts of tax dollars going undetected. Years ago in Toronto there were legal non-conforming properties in certain areas of Toronto renting out to tenants but it was not material and did provide a social service for those in need so no problem.
DELETED
#67 Bottoms_Up on 08.06.16 at 8:21 pm
#36 Brazil ex-pat on 08.06.16 at 5:10 pm
———————-
Fair yes, but equal? That’s for the birds. Why be equal with a kook?
+++++++++++++++++++++++++++++++++++
So if you are going to call someone names….let’s see some examples of “kookish” information professor? What have I said anytime that has been incorrect?
#115 Doug Rowat – you will never become an Iron Man unless you can survive The Burning Man event. Take out some vacation time as it starts on August 28th as even the Iron Man would never survive it all. I went once and barely made out of it alive.
“That may soon be cured. ”
Are you going to be single again? I am looking for a husband.
Regardless, welcome Doug!
#31 Andrew Woburn on 08.05.16 at 8:10 pm
“Have any other BC blog dogs run across other examples of extreme government cash flow management?”
If you don’t get a reply, try asking a federal civil servant.
Welcome!
1/ where can i learn more about investing in REITs ie, what companies, websites,etc and
2/ what is the minimum one would need to invest monthly or an on going basis please?
In short Mr Doug is saying If you invest 10K to REITS ETF like XRE you will get approx $40 a month in income.
I think it is more wiser not to go to Mall owned by this REIT’s and spend $40 a month than to invest 10K
What do you think Mr Doug
Agree with this. My REITs are up 22% overall since this time last year. I did say a number of times on this blog that people should purchase REITs. There are still a number of very good deals out there. I was buying them up when they were being sold for below book value (I believe people were dumping them to buy houses in “hot” markets like Vancouver). It seems a lot of really good stocks and securities have been dumped recently by persons scrambling to get into housing markets before prices rise out of reach.
Right now I am buying oil companies.
This time next year I will be buying Canadian Banks.
Thanks for this awesome explanation of REITS, Doug. I also enjoy the Hannibal Lecter reference along with Trump. Very entertaining.