What is a REIT?
A Real Estate Investment Trust (REIT) is a property investment company. Unlike lots of other property investments, it can be easily traded on the stock market – exactly the same as any other share.
This can make it an attractive way for ordinary investors to invest in property. You can invest a small amount, rather than the tens of thousands needed to buy a property outright. And you can get your money back at any time – although as with any investment, you could back less than you originally put in.
To qualify as a REIT, at least 75% of profits must come from property rental and 75% of the company’s assets must be involved in the rental business. REITs must also pay out 90% of their rental income to investors.
In exchange for operating within these relatively strict rules, and to encourage investment in UK real estate, REITs don’t pay corporation or capital gains tax on their property investments.
Investing in property doesn’t necessarily mean buying buildings. There are lots of ways you can invest in property, either directly or indirectly.
If investing in property is something you’re keen to explore, either on its own or as part of a wider investment portfolio to spread the risk, you’ll need to do your research, assess your finances and take the right steps. Follow our guide to property investment to boost your chances of success.
BENEFITS OF INVESTING IN REIT
Modeled after mutual funds, REITs pool the capital of numerous investors. This makes it possible for individual investors to earn dividends from real estate investments—without having to buy, manage, or finance any properties themselves.
Upper Echelon owns, operates, and finances income-producing properties. We invest in most real estate property types, including apartment buildings, data centers, hotels, medical facilities, offices, retail centers, and warehouse. We also comply with all provisions stated in the Internal Revenue Code (IRC)
