Quote:
Originally Posted by jIM_Ohio
REITs return and the value of my house will not correllate. For starters REITs would probably be owned because of a dividend stream, and I don't see my house paying me dividends any time soon. I would not lower REIT exposure because my house was 20-30-50% of my portfolio.
Consider that REITs can be diversified into commercial real estate, foreign real estate, vacation real estate etc... all those sectors would not correllate to the value of my house in Ohio.
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The Vanguard REIT index returned 35%, 30%, 11% and 35% in the years 2003-2006 respectively. I think that is pretty well correlated with the rise of the housing bubble in the US, although not necessarily with every housing market.