Investing in a REIT |
The REIT legislation allows the creation of liquid and publicly available property investment vehicles. These vehicles may therefore be of interest to a wide range of investors for the following reasons:
- Investment into property through a readily tradeable investment asset, as compared to direct investment into property, which is generally an illiquid asset;
- Diversity of investments across a range of property assets;
- Access to parts of the property sector that private investors are not otherwise able to access e.g. shopping centres or industrial property;
- Regular income returns;
- Low entry level compared to purchasing an entire property; and
- Lower transaction costs (i.e. 0.5% stamp duty on shares compared to 4% stamp duty on property).