What investors should consider prior to investing in REITs
Key among the benefits is diversification since real estate prices are not correlated to stock prices. The addition of REITs can help form a diversified portfolio.
Key among the benefits is diversification since real estate prices are not correlated to stock prices. The addition of REITs can help form a diversified portfolio.
The REIT vehicle allows for the pooling of capital from different investors to offset these costs. These funds can also be used to fund the marketing, sale, retention and management of these real estate assets.
A Real Estate Investment Trust (REIT) is a professionally managed entity that is setup as a collective investment scheme primarily to own, operate or finance income-producing assets across a diverse range of real estate sectors for the benefit of their shareholders (or unitholders).