real estate investment trust
- A business entity dubbed as REIT that gathers investments from various investors and uses this collected capital to purchase real estate properties. Each investor is then granted an interest in the property or a share in a loan secured by a mortgage on the property. The loan is typically employed to develop and improve the property, with the expectation of profit distribution upon its sale, should there be any profit
- REITs are considered attractive as they provide a way to invest in real estate without the need to directly own properties.
- The real estate investment trust is especially popular among investors seeking regular income, as it is obligated to distribute the majority of its profits as dividends.
- Because of its tax advantages, investing in a real estate investment trust has become a popular option for individual and institutional investors.
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