Invest brokerage-free Equity Delivery and Direct Mutual Funds (truly no brokerage). Pay flat Rs 20 per trade for Intra-day and F&O. Open Instant Account and start trading today.
What are the benefits of investment in REIT?
REIT is an investment tool that owns and operates rent-yielding real estate assets.
It allows individual investors to make an investment in real estate without owning it and earn an income.
REIT's are listed at the stock exchange. They can be traded like stock and NCD's.
REIT is an alternative investment option for long-term in real estate.
Income earned by REIT could be through rentals or capital gains or both, and it gets distributed to unitholders.
SEBI rules state that REITs shall distribute not less than 90 percent of the net distributable cash flows to its investors at least on a half-yearly basis.
REIT's offer regular and higher distributions compared to dividend on listed equity,
They offer higher liquidity and transparency than direct investment in real estate
They offer exposure to well-diversified real estate portfolio thus providing better risk mitigation.
REITs provide real estate ownership at an affordable ticket size. You could invest as low as Rs 2 Lacs.
REITs are professionally managed assets. REIT Managers are required to have at least 5 years of experience in property management.
REITs provide stable income and certain yield as 80% of REIT assets are income generating properties that have long term rental contracts.
REIT's are better insulated from regulatory/ political risks
REIT's are more accessible to small investors and likely to have higher liquidity.
