INVEST IN REAL ESTATE INVESTMENT TRUSTS(REITS)
UnderstandingtheBenefitsandOpportunitieswith LifelongInvestments app.lifelonginvestments.ca
INTRODUCTION TO REITS
Real Estate Investment Trusts (REITs) are investment vehicles that Lifelong Investments utilizes to own, operate, or finance income-producing real estate across various property sectors. Established in the United States in 1960, REITs provide a way for individual investors to earn a share of the income produced through commercial real estate ownership without actually having to buy, manage, or finance any properties themselves. There are several types of REITs, including Equity REITs, Mortgage REITs, and Hybrid REITs.
HOW REITS WORK
REITs work by pooling funds from multiple investors to purchase or finance real estate. They generate income primarily through leasing properties and collecting rents, which is then distributed to shareholders in the form of dividends. To qualify as a REIT, these entities must distribute at least 90% of their taxable income to shareholders annually and adhere to other regulatory requirements.
ADVANTAGES OF INVESTING IN REITS
Investing in REITs through Lifelong Investments offers several advantages:
Diversification: Access to a diversified portfolio of real estate assets.
Income Generation: Potential for regular income through dividends.
Liquidity: Easily traded on major stock exchanges, providing liquidity compared to direct real estate investments.
Professional Management: Properties managed by experienced professionals, reducing individual investor responsibilities.
