REIT - Real Estate Investment Trust
Investing in Real Estate Investment Trusts REIT allows you to invest in commercial property with other people wishing to do the same without the need personally or physically to invest in bricks and mortar. Real Estate Investment Trusts REIT are public limited companies and issue a fixed number of shares. You can then buy shares in the company. This is why, unlike Unit Trusts and OEICs, they are classed as 'closed ended'. Share prices can obviously fall as well as rise.
Provided certain conditions are met such as:
The investment fund itself then grows tax free on its rental income business.
Lump sum investments: Yes
Regular premiums allowed: Yes
Flexible payments allowed (stop/start/additional/increase/decrease): Yes
Investment Risk Profiles Available:
Changing funds and risk profile allowed: No
Moving to another company allowed: No
Life Insurance Included: No
Personal Tax Benefits:
Can be held inside Trust: Yes
Capital Gains Tax CGT
Depending on the amount of profit you make when you sell your REIT, you may need to also pay Capital Gains Tax.