Health
Profit From Property
If you've a wish to join the Donald Trumps of the world in making money by investing in real estate, a REIT trust centering on such properties allows you to be a shareholder in apartments, shopping centers, offices and warehouses, says the National Association of Real Estate Investment Trusts.
A REIT uses the capital provided by investors to acquire or finance those types of real estate. Investors get the benefit of a diversified portfolio under professional management. Returns, naturally, depend on the health of the markets, so investigate risk factors carefully.
Among the tax benefits, a REIT doesn't pay corporate income tax to the federal government or most states. That means nearly all of its income is available for distribution, and by law it must pay 95 percent of its taxable income to its shareholders every year. Returns in recent years have far outrun direct property investments.
The association says REITs may be for you if you want liquidity, current income and potential for long-term appreciation.
A REIT uses the capital provided by investors to acquire or finance those types of real estate. Investors get the benefit of a diversified portfolio under professional management. Returns, naturally, depend on the health of the markets, so investigate risk factors carefully.
Among the tax benefits, a REIT doesn't pay corporate income tax to the federal government or most states. That means nearly all of its income is available for distribution, and by law it must pay 95 percent of its taxable income to its shareholders every year. Returns in recent years have far outrun direct property investments.
The association says REITs may be for you if you want liquidity, current income and potential for long-term appreciation.
