REITs Investment refers to real estate investment trusts, a kind of investment where a company pools money through an initial public offering. The money is then used to develop and buy assets in real estate, manage them, or sell them for profit. Some of the more common types of REITs investment are health care, residential, retail, hospitality, and office REITs. The company earns rentals from the occupants of these real estate properties, which serves as its major source of revenue.
 
A wealthy person can make investments of this magnitude but that means putting almost everything that he/she has into his/her business venture, which only a few could afford and would dare to do. To offset the costs and the risk, REIT shares are offered publicly and the money collected is used to purchase real estate properties, which the company will manage.
 
There are three major advantages of buying shares in a real estate investment trust. The first is that investing in real property requires a big amount of capital. Land and buildings cost a lot ad even if you can afford them, putting all that you have in a single investment is not a wise move. When you buy a share in a trust investment, the REITs company can easily diversify your investment. They can buy different kinds of real properties, all of which are partly yours. Spreading your money is a wise investment move. If one property is not doing well, there are still others from which your money will be earning an income. When you purchase a REIT share, you are just paying for part of the price of the real estate. In this kind of investment, there is no labor cost involved except for the time you trying to find the best trust investment company that will make your money work for you.
 
Second, when you purchase a REIT, you are entitled to have a share of the income earned by the company every year called your dividend; unlike in investing in stocks where you only benefit when stock prices go up, and when you sell your shares. With a real estate investment trust in Singapore you become part owner of the real estate property and when it is sold in the later years, you will get a share of the appreciation value plus your annual share from that year’s profit. This gives you a yearly income and a long term investment on the land and structures.
 
And finally, investors in a REIT company are entitled to divide among themselves 90% of the company’s taxable yearly earnings. Considering that the assets as health care facilities, office spaces, store spaces, apartments, and hospitality investment earn huge amount from rentals, shareholders are likely to get big amount of shares. In short, the REIT provides investors with a yearly income from the profits of the company. Another income that they can expect in the future is when some properties are sold at higher prices than the purchase price. As shareholders, profits from the sales will also be divided among them.