Real estate investment trustDo you want to good returns by investing in real estate without the hassle of going through the formalities involved in buying and selling property
REITs are a way to generate returns that real estate investment offer
Reits pool income from multiple investors and invest them in income generating real estate such as office property
According to the law reits have to pay 90% dristributable cash flow to investors
In india there are 3 REITs
1 embassy office reits
2.brookfield reit
3.mindspace business REITS
REITS have the potential to return handsome returns from property
Risk factor in REITsVacancyLow occupancyLoan to value- overleverage is bad for reitsDiversification- well managed property in prime location adds to chances of long term occupancy
Unit holders are taxed at the same rate at which REITs are taxed