REIT Australia Yielding 5% Or More? // Generate Passive Income (Australia) With ASX REIT Investing📈

Описание: In this video, let's talk about REIT Australia. I'll cover the basics around REIT investing for beginners, then I'll jump to top 2 REITs in ASX that's yielding 5% or more. For my coverage in other REITs (Australia) check out this playlist here:    • REIT Australia  

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How Do REITs Australia Work?
REITs are real estate investment trusts that own and manage a portfolio of real estate assets for the benefit of shareholders (aka unitholders). That basically means that they look for high-quality properties with great tenants that can lease the property for a long time (where possible). Then the rental income from the tenants is passed onto shareholders in the REIT. In a nutshell, that's essentially how REITs work.

Category of REITS
Now there are 4 main category of REITs you need to know, and that's:
Retail → Think of shopping centres, bunnings warehouse, or furniture store
Commercial → Commercial real estate are business driven, so that could be farm land, office buildings or even storage
Residential → Think of apartment buildings, student housing or single family homes
Industrial → Distribution centers, factories or production plants

REIT Investments Pros And Cons
The pros with REIT Australia are that it's generally higher yield (5-7%), the rental income is relatively stable, with most lease agreements there are built-in rent increases and there's the additional tax-deferred income.

The cons with REIT Australia is that it has a high payout ratio (60%+), tenant risk, very sensitive to economic cycles (depending on the type of asset), and potentially over-leveraging to improve returns.

Granted those are the REIT Investments Pros And Cons my filtering criteria for a great REIT are:
High-Quality Tenants
Weight Average Lease Expiry Of Greater Than 5 Years
Essential Assets And Resilient Against Economic Cycles
Earnings Growth
Debt To Equity Ratio Less Than 0.6

Timestamps
0:00 Introduction
1:08 How Do REITs Australia Work?
1:36 Type Of REITs
2:22 REIT Investments Pros And Cons
3:56 Filtering Criteria For A Great REIT (Australia)
4:46 Chater Hall Long WALE REIT (ASX:CLW)
7:17 Centuria Industrial REIT (ASX:CIP)
9:27 What I Could Do Better Next Time

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Disclaimer: I’m not a financial advisor. The information contained in this video is for educational and entertainment purposes only. Any purchases of stock that I show during the video should not be considered financial advice and you should consult a licensed financial advisor before making any investment decisions. I will not be held liable for any losses incurred for investments or trades that mirror my strategy. Please be careful!