A Real Estate Investment Trust (REIT) is a company that owns, 厚木市 不動産売却 , or finances income-generating real estate. REITs offer individuals an opportunity to invest in real estate without directly owning or managing properties.
Types of REITs
- Equity REITs: These invest in physical properties, such as apartment complexes, office buildings, and shopping centers, and earn income through rent.
- Mortgage REITs (mREITs): These provide financing for real estate by purchasing mortgages or mortgage-backed securities, earning income from interest payments.
- Hybrid REITs: A combination of equity and mortgage REITs, earning income from both rent and interest.
How REITs Work
REITs operate like mutual funds for real estate. Investors buy shares in the REIT, and the company pools funds to acquire or finance real estate assets. Most REITs are publicly traded, allowing investors to buy and sell shares on stock exchanges.
Benefits of REITs
- Diversification: REITs spread investments across multiple properties or markets, reducing risk.
- Liquidity: Unlike traditional real estate, REIT shares can be quickly traded.
- Dividend Income: REITs are required to distribute at least 90% of taxable income as dividends.
- Accessibility: REITs lower the financial barrier to investing in real estate.