Eamon Lowe: Understanding Real Estate Investment Trusts


Eamon Lowe


Real estate Investment Trusts (REITs)  are companies that own or operate large-scale income-producing real estates. The income-producing real estates are Office buildings, Malls, Warehouses, Apartments, etc. They lease those properties they own and collect the rent, later dividing the rent among the shareholders. The REITs companies also allow people to invest in those income-producing properties or assets.


Eamon Lowe, an Australian property developer, speaking on why individuals invest in REITs states that the opportunity gives investors the chance to earn possession of some very high-valued assets. This allows them to boost their capital while enjoying their income made through the investment.

Types of REITs

Among all the REITs, the most essential types are 


  •  Publicly Traded REITs: These types of REITs are registered under sec. They are accessible to all types of investors who can sell and purchase such shares.


  • Private REITs: They function privately, allowing only a selective list of investors.


  • Publicly Non-Traded REITs: The types of shares they offer are quite extended and are stable to invest in. They are registered under the SEC but are not publicly traded.

Risk and Benefits in REITs

Investors who invest in REITs has these advantages:


  • Since many REITs are often traded in the stock market, it can be a good initiate to diversify your real estate investments

  • Investors can enjoy steady income through their investments for a long time

  • Being regulated by the SEC the Publicly- traded companies provide fair market prices.



Some of the limitations  are:

  • One of the major risks is that REITs can be affected by market fluctuations 

  • In terms of taxation, REITs is not much of a help

  • Low growth prospect and high maintenance fee.

Who Should Invest in REITs?

People and corporations who have a big amount of capital at disposal are suitable investors for REITs. As the REITs are very high valued real estate, it requires a large sum of money. 

How to Invest in REITs?

You can invest in publicly traded REITs by purchasing stocks through a broker. You can also invest in private REITs by finding a broker who participates in non-traded REITs. When you look forward to investing, never trust people who offer you REITs that are not registered on the SEC. 


Here are some of the tips by Eamon Lowe to take note of while you are investing:

  • Before investing, look for companies with a positive record

  • You should choose the REITs  that have diverse property options

  • Opting for companies that have been in the field for several years is a wise decision.

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