# Reits



## Saniokca (Sep 5, 2009)

Just wondering which reits forum members are holding.

I am holding a large position in CHP.UN but looking to add another one in daughter's RESP - something to purchase, add every year and forget about until she needs the money.


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## gibor365 (Apr 1, 2011)

Saniokca said:


> Just wondering which reits forum members are holding.
> 
> I am holding a large position in CHP.UN but looking to add another one in daughter's RESP - something to purchase, add every year and forget about until she needs the money.


There were tons of similar threads, anyway , I hold a lot 
HR, REI, DRG, AX, CUF, SRU, SRT


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## DigginDoc (Sep 17, 2015)

Rei, cuf, and HR for me. Not too much.
Cheers
Doc


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## gibor365 (Apr 1, 2011)

DigginDoc said:


> Rei, cuf, and HR for me. Not too much.
> Cheers
> Doc


I have a lot , but total REIT allocation is below 10% of total portfolio (that is pretty big).

For OP, I'd never invest RESP into equities because of a limited plan duration, but if I'd buy REIT for RESP, I'd go with ZRE


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## Saniokca (Sep 5, 2009)

gibor365 said:


> I have a lot , but total REIT allocation is below 10% of total portfolio (that is pretty big).
> 
> For OP, I'd never invest RESP into equities because of a limited plan duration, but if I'd buy REIT for RESP, I'd go with ZRE


I don't worry too much about the duration - I look at it from a "total portfolio" perspective... Also I think 18-20 years is not that short. I'd like to add a reit position and RESP is a nice place to park it (vs. some US stock/index which will attract taxes on dividends so would rather hold that in RRSP). At the end of the day if there isn't enough money I could always pay the difference.


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## Koogie (Dec 15, 2014)

I hold VRE and SRU.UN I've been happy with both but if I had to do it over, I would choose ZRE instead of VRE (I like the equal weighting better). VRE is massively dominated by RioCan and H&R. There is also XRE but it operates like VRE.


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## pastorash (Feb 3, 2014)

I'm building out my RRSP with 13 holdings so far and 2 REITS. Have Dream Office and HR. Used to own the Keg Royalties Fund as a bit of a lark but after an unexpected but welcome large appreciation I sold it for a profit.


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## redsgomarching (Mar 6, 2016)

gibor365 said:


> I have a lot , but total REIT allocation is below 10% of total portfolio (that is pretty big).
> 
> For OP, I'd never invest RESP into equities because of a limited plan duration, but if I'd buy REIT for RESP, I'd go with ZRE


15-18 years + is a pretty long time to hold.


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## gibor365 (Apr 1, 2011)

Saniokca said:


> I don't worry too much about the duration - I look at it from a "total portfolio" perspective... Also I think 18-20 years is not that short. I'd like to add a reit position and RESP is a nice place to park it (vs. some US stock/index which will attract taxes on dividends so would rather hold that in RRSP). At the end of the day if there isn't enough money I could always pay the difference.


If your child just were born, then yes, you have 18-20 years , but still you need to liquidate your RESP at specific date, you cannot like RRSP transfer it to RRIF. SO,would you moved to more conservative portfolio 5 years before RESP should end or 3 years?! 
Don't get your point about taxes, you are not paying any taxes on REITs and US stocks dividends neither in RRSP nor in RESP.
Also wondering how are you going to withdraw money when times come? Do you have to pay withholding fees when you redeem from discount brokerage ? Can you redeem online or you should go to the branch? I doubt you can redeem online as government require physical original doc with your signature and doc about student enrollment... Aslo not clear how you gonna distinguish between PSE and EAP redemptions...
I hold 3 family RESP in TD,one MF RESP for daughter, 1 MF RESP for son, 1 Term RESP for both of them. I cannot mix in 1 account MF RESP and Term RESP (as per TD rules). There is separate calculation on every account for EAP/PSE portions... So even in regular bank, this pain in the ***, esp that no one from reps don't understand how withdrawals from RESP works.... I already teached 5-6 TD reps about RESP rules


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## Saniokca (Sep 5, 2009)

gibor365 said:


> If your child just were born, then yes, you have 18-20 years , but still you need to liquidate your RESP at specific date, you cannot like RRSP transfer it to RRIF. SO,would you moved to more conservative portfolio 5 years before RESP should end or 3 years?!


Yep she is not even 1 yet . I always have enough cash in registered accounts so could sell in RESP and buy elsewhere if I don't want to completely liquidate.



gibor365 said:


> Don't get your point about taxes, you are not paying any taxes on REITs and US stocks dividends neither in RRSP nor in RESP.


I am fairly certain that US dividends are taxed in RESP (same as in TFSA). The US-Canada agreement only covers retirement accounts if I remember correctly. 
I found this link:
http://www.taxtips.ca/rrsp/investmentsinorout.htm

_"If shares in U.S. or other foreign corporations are held in a non-registered account or a Tax-Free Savings Account (TFSA), Registered Disability Savings Plan (RDSP) or Registered Education Savings Plan (RESP), withholding tax will be deducted from dividends received. These accounts are not considered "retirement accounts". When the withholding tax is paid from a non-registered account, it can be partially or fully recovered via the foreign tax credit. Withholding taxes paid by the TFSA, RDSP or RESP are not recoverable."_



gibor365 said:


> Also wondering how are you going to withdraw money when times come? Do you have to pay withholding fees when you redeem from discount brokerage ? Can you redeem online or you should go to the branch? I doubt you can redeem online as government require physical original doc with your signature and doc about student enrollment... Aslo not clear how you gonna distinguish between PSE and EAP redemptions...
> I hold 3 family RESP in TD,one MF RESP for daughter, 1 MF RESP for son, 1 Term RESP for both of them. I cannot mix in 1 account MF RESP and Term RESP (as per TD rules). There is separate calculation on every account for EAP/PSE portions... So even in regular bank, this pain in the ***, esp that no one from reps don't understand how withdrawals from RESP works.... I already teached 5-6 TD reps about RESP rules


I haven't thought about this at all to be honest. Worst case scenario I can transfer to another institution (it's usually $100-$150 so not terrible). I think as long as I keep detailed paperwork it should be solvable.


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## VLT (Jan 1, 2017)

*What REIT would you buy now?*

Thoughts?


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## OnlyMyOpinion (Sep 1, 2013)

:fatigue: Ideas on this recent thread: http://canadianmoneyforum.com/showthread.php/108938-Reits


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## TomB19 (Sep 24, 2015)

I'd buy kmp, wait for the EU to crash this summer, and then sell the kmp and buy drg.

If drg doesn't become volatile this summer, I'd just hold the kmp and be pleased to do so.


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## Koogie (Dec 15, 2014)

Same one I always buy whenever the cash builds up in my TFSA.

SRU.un


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## My Own Advisor (Sep 24, 2012)

CAR.UN and REF.UN. Nobody can afford to buy in urban cities anymore!

to Moderators - can we merge?


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## AltaRed (Jun 8, 2009)

Agree. Please merge. Freaking annoying to have virtually identical new threads born on a monthly, or bi-monthly basis.


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## EngPhysGuy (Jul 9, 2015)

I think I'm finally going to change course... I have been holding ZRE for a while now, but can't get over the 0.6% MER for only 19 holdings. I've looked closely at VRE and XRE as well and can get more than 50% of what is in these ETFs by holding REI.UN, HR.UN, CAR.UN, SRU.UN and REF.UN. 

From a quick look it seems like I'd still be getting pretty good diversification in the various REIT classes; Residential, Office, Retail. 
I see a number of people doing this as well. How did others come up with their basket of REITs to avoid paying the costly MER on REIT ETFs? Any thoughts on if the 5 suggested REITs above concentrate too much on one class?


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## john.cray (Dec 7, 2016)

Hello,

I had a similar thread elsewhere and started with the same concerns - I didn't want to pay 0.60% MER for 19 equally balanced REITs so decided to roll my own. This is my list and some of the reasons why I chose each of them. Feel free to comment.

REI.UN - largest, retail + office, 5.35% yield, 0.27 beta, AFFO = 91.55%, Occupancy = 95.60%, Debt = 40.00%
CAR.UN - large, residential, good grown but low yield, -0.18 beta (great!), above metrics are 75.00% 98.70% 44.31%
AX.UN - medium size, diversified, beat up lately due to Alberta but good growth potential, 8.0% yield, metrics: 88.50% 92.00% 51.00%
AAR.UN - medium size, industrial, focused on ecommerce distribution and logistics FedEx is 25% of client base, 5% yield, metrics: 86.60% 95.60% 42.30%
NWH.UN - small, medical buildings and hospitals in 5 countries, good diversification, 7.34% yield, metrics: 93.00% 95.60% 51.50%
SOT.UN - very small, office, great sustainable yield of 9.23% but probably not much growth due to this, metrics: 87.60% 86.40% 59.10%

Equal weight them all 1/6 yeah. Average yield comes to about 6.5%. Used http://portfoliovisualizer.com/ to compare inner correlations and tried to keep them small. Also wanted to keep the basket with as low correlation to the TSX as possible.

Currently hold 12% of total portfolio in those but 2 of them I haven't purchased yet.

That's all I have. Hope it's useful.

Cheers,
JC


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## Ponderling (Mar 1, 2013)

Im in CAR, KMP, NWH, and VRE in my RRSP, in the same vein as JC above - on modest returns, long term 0.6 drag does pile up as to the hit you take over time.

Then RSI as a commodity I don't see dying off soon. and FSC as a real estate management and the services management buys , largely.

Wife has FCR as her RE play in her RRSP


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