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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?


To: Scott Mc who wrote (3656)7/30/2002 9:49:19 AM
From: Goldberry  Read Replies (4) | Respond to of 11633
 
Scott I just returned from vacation so am posting to an old post.

Some thoughts on borrowing to buy REITs vs actual property.

Mtg on income properties is usually at fixed rate for say 5+ yrs and any borowing for the REITs should also be at fixed rates.

Rather than the REIT shares I would look at ones with convertible debentures with more sure form of return. IE Morguard REIT has mrt.db with a return of about 8.5%. This eliminates downside on principle but allows upside if market value of properties goes up.