In average, how much will I earn on a $25K investment in REIT?

Question

and would it be a good idea to invest $25K and reinvest for the next 20 years? Whats the est. ROI in 20 years? Im trying to get the good feelings before I look for trustworthy REIT I can invest.

Thanks!

Answer 1

This is a very difficult question to answer.  There is specific roi you can expect from an REIT.  They vary considerably.  I do not even know of any accumulated statistics going back for 20 years.

One of the largest REITs is Simon Property--shopping malls.  Their 10 year average annual return has been 16%.

Equity Residential, a large apartment REIT has a 10 year average annual return of 11%.

I would not expect those type of returns for the next 20 years however.  Think more in the order of 8-10%.  

Fidelity Real Estate Investment Portfolio, a collection of REITs has returned about 11% since its inception.   Over 10 years but I do not know when it was begun.