What is reit?

Reit means confidence in real estate investment and is a company that owns and usually manages income property such as apartments, offices and industrial space. Along with meeting other criteria to qualify as a reit in the United States, the company must:

• Pay at least 90% of your taxable income to your shareholders as dividends each year.
• have at least 100 shareholders.
• Invest at least 75% of your total assets in real estate.
• derives at least 75% of its rental or mortgage interest from real estate in its portfolio.

In the United States, Congress founded Reit in 1960 to provide all investors with the opportunity to invest in large real estate producing income; Before Reits, these were usually only large institutions and wealthy individuals who could afford to invest in revenue real estate. Most Reit shares are freely available on the main exchanges. They represent an invethe story -effective method of investing in real estate without the task of being a landlord; Each shareholder earns the percentages for Rata, which means part of the total reit profit.

global criteria

Since 1960, Reit has been introduced to several other countries, including Australia, Japan and Brazil. The criteria for Reits and other investment investment investment differ according to the place. For example, in Japan, 50% of Reit's revise must come from 75% in the US and Japanese Reit cannot invest more than 50% of their shares in other companies. In Australia, 100% of the investment income must be paid to shareholders.

types of reit

Since 2009, there have been about 170 Public Reits, which control a total of more than $ 300 billion (USD). Many Reit focuses on one particular type of property such as residential or commercial. Some process Mainvency and Property Management in their portfoliosWhile others use the supplier to perform this work. There are generally three types of REIT:

• own capital : This type of investment owns and manages real estate, in particular rental of real estate, and obtains revenue by collecting rent.


• Mortgage : Mortgage Reit can lend resources for mortgage loans and also purchase securities that are supported by my mortgages. Income from this investment comes from interest obtained from mortgage loans.


• Hybrid : The combination of the first two types, the Reit hybrid can own and manage real estate and offer mortgage loans financing and buying securities secured by mortgages. Revenue is obtained from both sources, namely rental and interest income.

Investment benefits

Maybe one of the most attractive aspects of Reit is the methods in which taxes are processed.H taxable income of the company that can often remove all tax burdons. Taxes are paid only by an individual investor for the dividends received and any capital gains. Investors can earn dividends that act as a form of reception, and the amount of paid dividends moves between different countries.