Should I buy REITs?

[ChapInTokyo]

I am thinking of buying some eMaxis Slim domestic REIT index funds for additional diversification, and to add more home country bias (or rather home currency bias) into my portfolio. What are the arguments for and against Japan REITS? Would it be better for example to wait until US interests actually start coming down before putting money into Japan REITS for instance? Thanks.

[Tsumitate Wrestler]

I am thinking of buying some eMaxis Slim domestic REIT index funds for additional diversification, and to add more home country bias (or rather home currency bias) into my portfolio. What are the arguments for and against Japan REITS? Would it be better for example to wait until US interests actually start coming down before putting money into Japan REITS for instance? Thanks.

I have certainly toyed with the idea. However REITS globally are 2% of the equities market. 5% of that are J-Reits.

So we are looking at .1% of the global equities market. That is pretty concentrated, just for the sake of removing currency Risk.

That being said, J-Reits in a Japanese trust offer nice protection from the dividend taxation that plagues US etfs and I would definitely take it any day over being a landlord any day.

At the end of the day it is too easy to be bearish on the sector as a whole, and I do not have the expertise to take an every smaller slice of that .1% sector by sector.

[ChapInTokyo]

Diversification and home currency bias would work well in Japan REITs, but Japan REITs represent a pittance of the global market. Help might come waiting for U.S. rate cuts, but timing the market was always a gamble. Consider where it fits in to your larger picture.

Thanks. I think that I will definitely wait a bit longer before adding Japan REITs then. What with the general mood being of the higher interest rates in the US quite possibly staying like that for some time, it seems a bit too risky at the moment!

[ChapInTokyo]

I am thinking of buying some eMaxis Slim domestic REIT index funds for additional diversification, and to add more home country bias (or rather home currency bias) into my portfolio. What are the arguments for and against Japan REITS? Would it be better for example to wait until US interests actually start coming down before putting money into Japan REITS for instance? Thanks.

I have certainly toyed with the idea. However REITS globally are 2% of the equities market. 5% of that are J-Reits.

So we are looking at .1% of the global equities market. That is pretty concentrated, just for the sake of removing currency Risk.

That being said, J-Reits in a Japanese trust offer nice protection from the dividend taxation that plagues US etfs and I would definitely take it any day over being a landlord any day.

At the end of the day it is too easy to be bearish on the sector as a whole, and I do not have the expertise to take an every smaller slice of that .1% sector by sector.

Thanks for your input! I think that for the moment I will hold off on adding those Japan REITs.

[captainspoke]

I am thinking of buying some eMaxis Slim domestic REIT index funds for additional diversification, and to add more home country bias (or rather home currency bias) into my portfolio. What are the arguments for and against Japan REITS? Would it be better for example to wait until US interests actually start coming down before putting money into Japan REITS for instance? Thanks.

I have certainly toyed with the idea. However REITS globally are 2% of the equities market. 5% of that are J-Reits.

So we are looking at .1% of the global equities market. That is pretty concentrated, just for the sake of removing currency Risk.

That being said, J-Reits in a Japanese trust offer nice protection from the dividend taxation that plagues US etfs and I would definitely take it any day over being a landlord any day.

At the end of the day it is too easy to be bearish on the sector as a whole, and I do not have the expertise to take an every smaller slice of that .1% sector by sector.

Thanks for your input! I think that for the moment I will hold off on adding those Japan REITs.

I'm sure you'll be back in a day or two asking something further about REITs and whether they might be best...

[ChapInTokyo]

I have certainly toyed with the idea. However REITS globally are 2% of the equities market. 5% of that are J-Reits.

So we are looking at .1% of the global equities market. That is pretty concentrated, just for the sake of removing currency Risk.

That being said, J-Reits in a Japanese trust offer nice protection from the dividend taxation that plagues US etfs and I would definitely take it any day over being a landlord any day.

At the end of the day it is too easy to be bearish on the sector as a whole, and I do not have the expertise to take an every smaller slice of that .1% sector by sector.

Thanks for your input! I think that for the moment I will hold off on adding those Japan REITs.

I'm sure you'll be back in a day or two asking something further about REITs and whether they might be best...

I think that I'll shelve the Japan REITS idea for several months at least. Doesn't really make sense to buy them while the prices are plummeting...

[Chizakura]

I find the question very interesting. More broadly speeking, how does one participate in (and therefore protect against) the rising land / real estate prices in Tokyo? (assuming living in Tokyo)

There's buying property here, but I'm also one of those who don't want to do that for various reasons. Another option is apparently REITs. What else is there?