2007-09-15

REIT (8)

Why should you invest in REITs? (2)


Liquidity

Unlike traditional private real estate ownership, REITs are liquid assets that can be sold fairly quickly to raise cash or take advantage of other investment opportunities.

One of the reasons for the liquid nature of REITs is that its units are primarily listed and traded on a stock exchange.


Affordability

Unlike direct property investments, where investors would require a large capital to invest, REITs provide average investors with the ability to invest and diversify their real estate investments without a large capital.


Convenience

Sale and purchase agreements, lawyers’ fees and stamp duties are among the many things real estate investors have to put up with.

Through REITs, investors are relieved of such factors.


Comfort of regulations

REITs must comply with the requirements of the Securities Commission Act , the Guidelines on Real Estate Investment Trusts which has investor protection as its main objective.

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