REITs represent a unique and suitable way to diversify your investment portfolio. These allow investors to own a property without owning a physical property while still generating regular income.
Most REITs in India are listed on public stock exchanges. Thus, the ease of buying and selling their stocks enhances their liquidity. As an investor, you can check all their financial transactions, audits, and profit & loss statements to reap the benefits of REITs.
Everyone dreams of building a stable and steady income option in their life. REITs give you the advantage of fulfilling this dream with minimum hassles of real-world struggles.
REITs are run by a team of highly experienced professionals from the real estate industry only. These professionals understand the real estate market challenges with handling procedures, acquisition, management, leasing, and related operational hassles.
REITs offer multiple tax benefits for investors. One of the main conditions for their eligibility is to distribute 90% of their taxable earnings to shareholders as a dividend payout, which allows them to receive a special tax exemption and avoid corporate tax.
After-tax benefits, another essential benefit investors can take from REITs is to adjust for rents and lease rates in parallel with inflation. For instance, rents and lease rates will increase if inflation rises, thus leading to a suitable increase in the income of investors.
REITs can also benefit from lowering entry costs to enhance their investment opportunities. Compared with direct property investment, these are significantly lower and provide a more stable income for your REIT investment.