Thread by @nifty_alchemist

Why you should #invest in #REIT's ?🏚️

Here's a #Thread 🧵

First we Understand >> What is REIT's ?

Full form is REIT is REAL ESTATE INVESTMENT TRUST.
Its an Investment Trust where they make a pool fund collected from peoples and institutions and that pool fund directly invest to any Real Estate property which generate #income.

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✅How investment in Reit is Beneficial for You?

▶️Reit has mandated by to distribute its 90% income to their Investors
▶️Reit has mandated by SEBI to invest 80% of their fund to income generating assets
▶️Its safe individual investor from fraudulent activity of Real Estate.
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▶️Individuals investor can easily liquidate their invested fund instantly from the broker terminal.
▶️Investors without owning a physical asset can enjoy the earning of Real Estate.
▶️Reits fund are managed by Real Estate professionals

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✅When Do REIT's pay Dividend ?

▶️REIT's have to declare dividend to their investors by every quarter which is the regulations of SEBI.

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✅Expectation of Return on REIT's : -

▶️The total returns from investing in REITs range from 12-20 per cent per year, including dividends and capital appreciation.
▶️Returns from dividends are 5-7 per cent per year.

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✅Tax Burden on Individual Investors?

▶️REIT's often own property assets indirectly through Special Purpose Vehicles (SPVs)
▶️These SPVs contribute their income to REIT's

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▶️The Dividend you receive from your REIT is taxed in two ways: -

1⃣ If the SPVs have not opted for the new concessional regime (under section 115BAA) on corporate tax, then your dividend from the REIT will be tax-free.

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2⃣ If the SPVs are paying a lower rate of corporate tax at 22% instead of the standard rate, then you will pay tax on dividend from the REIT at your income tax slab rate.

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Listed REIT's in India ?
1) #Embassy
2) #Mindspace
3) #Brookfield