What are the Benefits of REITs
What are the benefits of REITs?
REITs are a widely used way to invest in real estate without directly buying or managing properties. They provide access to income-producing assets and can complement a diversified portfolio. Key benefits include:
Regular Income
REITs are required in Ghana to distribute at least 80% of their taxable income as dividends. This offers investors a steady source of passive income.
Capital Growth
In addition to dividend payments, investors may benefit from long-term appreciation as real estate values increase over time.
Diversification
REITs reduce portfolio risk by adding exposure to real estate, which often moves differently from stocks and bonds.
Accessibility
They allow individual investors to participate in large-scale real estate opportunities that would otherwise be out of reach.
Liquidity
For publicly traded REITs, investors can buy or sell shares on an exchange, offering greater flexibility than direct property ownership.
Professional Management
REITs are managed by experienced professionals who handle property acquisition, financing, and operations, removing the complexities of direct ownership.
Transparency
Regulated structures and regular reporting provide visibility and accountability for investors.
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