A little-known real-estate investment vehicle in the U.K. is the true estate investment trust (REIT). In this short article, we'll discuss this process of property investing and present some information you could find useful if you're considering investing in a REIT.
First thing to learn about a REIT is that it's a method for corporations to get investment real-estate in way such that their corporate income taxes are reduced or eliminated. REITs are required by law to distribute 90% of these income, a fact which makes them very appealing to real-estate investors.
REITs are much like mutual funds for stock investments, except that they function with real-estate rather than stocks. Since mutual funds are safer investments than buying individual stocks, REITs are safer investments than buying individual items of real-estate property. They're great ways to get investment property without all the risk and real estate agent in ingleburn expenses associated with direct ownership.
Forms of REITs
REITs are much like corporations in they can be held publicly or privately. If publicly held, REITs can be listed on public stock exchanges in the same way shares of common stock in corporations are listed.