Why ReIT Investment is better options for Investor in various parameters?
First, let us understand what is ReIT (Real Estate Investment Trust). Consider a Mutual Fund which is easy to understand. Mutual Fund collects the money on behalf of Investors, makes POOL, invests in Equity or Debt market as per the mandate, and allots units to the Investors. Similarly, consider ReIT as a Mutual fund scheme, they already have the Real Estate Investment which they transfer to a Trust and allots pro rata basis to the Investor. Here the underlying asset is the Real estate Properties like leased commercial office space, building, or mall or may be community hostel etc. but Real Estate Asset.
Now let us compare Individual Investment in Real Estate Vs. ReIT way of Investment.
At present, very few issues of ReIT are available for the Investment. Recently, third offering by Brookfield is available for the subscription. Going forward, we assume that many more options will be available and who knows there will a separate Mutual Fund scheme that invests in all ReIT and offer all traditional benefits to the Indian Investor.
For more details please contact:
Amit Patani
9322094419
amit@prathamservices.com
Rajendra Dhulla
9323984221
rajendra@prathamservices.com