Independent financial advice - investing in REITS
For independent financial advice on REITs, talk to MRA ltd today
January 2007 sees the introduction of REITs to the UK market
REITS (Real Estate Investment Trusts) have been available in other countries around the world, including Japan, the USA and Australia, for many years. Now they are being introduced in the UK, thereby allowing smaller investors the opportunity to get independent financial advice about investing in property without putting funds directly into bricks and mortar.
What are REITs?
REITs are collective investments that pool investors' money, and this money goes to buy the types of property that individuals would not normally have access to. Independent financial advice says that the idea is that you can buy into property (usually but not exclusively commercial such as shopping centres, industrial units or leisure facilities) but you are effectively buying a slice rather than the entire property. This means that you could invest in a variety of properties and gain a return on a diverse portfolio.
Can I sell as well as buy?
In theory it should be easier to offload property because you're selling a share rather than a building. It's important to take independent financial advice before proceeding with REITs because they will be listed on the stock market, and will therefore be subject to the uncertainties of the market. If you'd prefer a safer investment it could be wiser to stick with buying domestic property outright.
Tax advantages
Tax is the really big selling point of Reits. When UK investors buy shares in property companies at the moment (either directly or through a pooled fund, such as a unit trust), they face the same 'double taxation' that any equity investor faces: companies pay corporation tax on their earnings, then the individual shareholder pays tax again on their dividend income or any capital gains. Independent financial advice reveals that REITs are, in effect, quoted companies that don't have to pay corporation tax.
REITs as a pension investment
The Chancellor's view is that a REIT is a more appropriate property investment vehicle for individual pensions than buying a single property as it reduces the risks involved. You can either buy directly into a REITs structure, or into a fund that invests in REITs, and taking independent financial advice will help you to decide which is the more appropriate for your investments.
You can have a brighter financial future. If you would like independent financial advice about investing in REITs call our experienced advisers today on 01424 777 156 or e-mail mike.robertson@mraltd.com
