Real Estate Investment Trusts or REITS allow you to invest and earn from real estate properties without hassle.
It’s similar to how you invest in companies and stocks - when you buy a REIT, you’re also buying a portion of that real estate business. It’s one of the cheapest ways to earn from rent – you don’t need a huge amount of money to get started. You also don’t need to think about managing crazy clients, taxes, monthly bills and following up on contracts. And for as little as R5 , you get to be your own landlord!
By owning REITs, you can earn in three ways:
Regular Payouts
Typically, 75% to 90% of company earnings go to investors like you. These are monthly or quarterly dividend payments that REIT companies are required to give their shareholders.
Appreciation
As the demand for properties rises, you can also earn when the price per share increases.
Tax
Earnings and gains from REIT investments are not taxed!
If you like real estate window shopping, EasyEquities allows you to choose from different types of properties. Most South African REITs own several kinds of commercial properties like shopping centers, office buildings, factories, warehouses, hotels, hospitals and even, to a lesser extent, residential properties.
Some REITs even invest in properties abroad. In fact, more than 25 countries in the world use a similar REIT model including the US, Australia, Belgium, France, Hong Kong, Japan, Singapore and the UK.
If you’re hooked, you can check out 29 REIT investments on our platform. If you want to diversify further in real-estate, take a look at EasyProperties.
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