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Real Estate Investment Trusts (REITs)
Real Estate Investment Trusts (REITs) are trusts that own and manage investment property and are a mechanism for invest in property which offers certain tax liability benefits. REITs have been extremely popular in the United States and have since made their way over the Atlantic with the introduction of UK REITs in 2007.
The reason for their popularity is that shares in Real Estate Investment Trusts allow investors to diversify their property portfolio without having to physically by properties outright. So if you are short of significant capital funds or are wary of committing 100 per cent to a mortgage you now have a viable alternative in the form of a REIT. Smaller investors can pool their funds and invest indirectly into a much broader collection of properties thereby reducing risks and delivering income through rent and capital growth. They are also exempt from the kind of double taxation traditional property investment companies are exposed to. Investors are simply taxed dividend income, and not any rental income or other capital gains.
Being a relatively new investment product, many investors are either unaware of Real Estate Investment Trusts or don’t know where to look for one. Here’s where myfinances.co.uk can help by comparing REITs so you don’t have to. We can save you time and money by simply filling in one quick form for a great
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Savings and investment companies and offers
Abbey unveils 5% and 7% regular savings rates
Julius Baer: Bond fund defends against downturn
Anglo Irish Bank cuts bond rates
Leeds delivers inflation-busting savings
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