Deconstructing REITs and taxes: new books help investors shape winning strategies - Common sense investing in real estate investment trusts; Winning the tax game

Money Digest, Dec, 1998

Common Sense Investing in Real Estate Investment Trusts

REITs offer wonderful advantages: they provide relatively high yields, carry lower risks than equities, have potential for capital gains, provide tax advantages and are easy to buy and sell.

However, until now there have not been many good sources of information on REITs, especially in Canada. Andrew Dagys' new book, Common Sense Investing in Real Estate Investment Trusts, fills this void. Dagys makes a compelling case for investing in REITs as a part of your portfolio strategy. (Dagys also discusses the potential risks involved in investing in REITs.)

The book starts with a clear explanation of what REITs are and how they work. Dagys discusses the importance of demographics in choosing REITs. He shows how to create your own REIT portfolio that will provide the best opportunity to be stable and to grow. He even discusses how to make your REIT portfolio tax-wise. The book concludes with details of specific Canadian REITs. It also lists U.S. REITs.

If you invest in REITs or are thinking of investing in REITs, you can benefit from reading this book.

Winning the Tax Game

Can a book on income tax be fun to look at and even easy to read? Yes, if it is written by Tim Cestnick. In his new book, Winning the Tax Game, Cestnick explains what the rules are and how to play the tax game. In addition to basics of tax planning, you will find detailed tips for your specific tax situation, whether you are a family person or a single person, an employee or self employed, an active investor or retired person. It contains specific tips on U.S. income and investments and deals with Quebec tax issues. It also contains a solid chapter on estate planning.

Attractively produced, the book is written in a lively fashion with boxes providing important tax tips.

Income tax is the single largest expenditure for most Canadians. This book will help you to minimize the tax you pay.

Common Sense Investing in Real Estate Investment Trusts by A. Dagys. Prentice-Hall. Winning the Tax Game by Tim Cestnick. Prentice-Hall. Both available at a discount from IAC. See page 15.