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Sunday, June 13, 2010

Real Estate Investment Trust (REIT) is a profitable venture and discerning investors would always opt for it. There are pockets of evidence across the globe about people investing in properties and making fast money on them.
The Mass media keeps giving statistics about the good returns that abound in property investment; and the rising prices of properties. Due to time, finance and lack of information, some people could not take up the opportunities in property investment; what option is left for this class of people?
One of such options is Real Estate Investment Trust (REIT).
REIT is an organization set-up for people interested in real estate as a business venture. Investment in REIT makes you a part owner of real estate investment club and enjoy profits from the proceed of the property investment. Investors in REIT should look for professionally managed REIT companies with good record of returns on investment.
REIT is easy to join or partake in. It starts with buying REIT shares which is traded on all major exchanges across the globe. It makes the avoidance of tax at corporate level possible through certain governing laws on REIT. The law state that 75% of REIT portfolio must be invested in properties. 3/4 of income of REIT comes from mortgage interest and rentals.
It has the following types of investment trusts such as rentage on ownership of properties by REIT which they feed on as income. Another, Mortgage loan known as Real-Estate loan; and property securities are all instrument for real estate investment trust to make profit and income for subscribed members.
REIT is basically investing in properties without having a property yourself. This is an easy way of investing in properties and you must check out this option of property investments.REIT companies are working and functioning in the market of real estates and there is no end to their acquisitions of landed properties and developments. Hence, no end to wealth creation unlike the capital market that experience bearish periods and recessions of economic down turn haphazardly.

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