Real Estate

Real Estate Investment Trusts (REITs): An Introduction

real estate market in Wanneroo

REITs are also known as Real Estate Investment Trusts, which allow various individuals to invest in large-scale income-producing real estate. Basically, the company owns and operates varied income-producing real estate. They are in the form of partnership, trust, association that invests in the real estate market, or corporation.

This association is known as REIT as it invests around 75% of its assets only in real estate and drives 75% of its revenues from different real estate activities.

It is found that around 150 million Americans own REITs via different modes like retirement savings and various investment funds.

What types of REITs are there?

There are a number of REITs registered, and they are publicly traded on the stock exchange. This type of REIT is known as a publicly traded REIT. However, numerous other REITs are registered, but they are not publicly traded.

They are known as non-traded REITs or non-exchange traded REITs. So, when you invest in any REITs, ensure to know whether they are publicly traded. 

What type of assets do REITs own?

According to a report, REITs invest in various real estate properties like offices, warehouses, retail centers, medical facilities, data centers, hotels, and many more. Most REITs only invest in the same type of properties, and others hold multiple properties.

Why should you invest in REITs?

Historically, REITs always deliver total competitive returns, which are entirely based on high and steady dividend income along with long-term capital appreciation. There is a low correlation of REITs with other assets because of, which makes them excellent portfolio diversifiers that reduces the overall risk and increases comprehensive income. So, if you are looking forward to investing in REITs when considering the real estate market in Wanneroo, no doubt it is an excellent mode to increase your investment.

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