Three years ago new rules paved the way for real-estate investment trusts (REITs), which are publicly listed and pay investors dividends based on rents. By law, they must pay 90% of their income as dividends.
Japanese REITs offer investors a middle way between the high-risk, high-return vulture funds and stodgy, low-return Japanese property developers, such as those attached to the Mitsubishi, Mitsui and Sumitomo keiretsu.
Currently, their dividend yields average a little under 4%, compared with the yield of 1.6% or so on Japanese government bonds.
However, beware that REITs have their risks — not least, that rents and property prices might fall.
Best step forward: THOROUGH RESEARCH!!