You can definitely earn money through real estate. You can but real properties and sell them for a higher value. You can buy condo units and apartments and rent them out for a stable monthly income. There are a lot of ways you can do to make money through real estate. And if you can’t afford to buy properties, there is another way to stick to the real estate industry. That’s if you invest in REITs, also known as Real Estate Investment Trusts. Let’s talk about it more in this blog.
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REITs are another method you can invest in real estate. In this method, you won’t have to buy real properties just to invest. Instead, you will buy stocks of real property companies. It works like investing in stocks but the focus here is real estate. Real estate stocks are the main portfolio being traded here. Corporations who own real estate properties can offer REITs to the public. So, if you want to focus more on real estate but you are not capable of buying your own properties yet, you can stick to real estate stocks to make your investing easier and more affordable.
Conservative investors want more liquid investment. Thanks to REITs, you don’t have to wait for years before you can buy or sell your real estate properties. What’s good about this portfolio is that you can invest in more a liquid asset than properties. Some properties are hard to sell, let’s accept that fact. This is because most of the properties being sold are big and you need the effort to look for buyers who can spend that amount on houses and lots. So, it’s really a considerable choice if you would be investing in more liquid real estate assets.
Unfortunately, you can’t invest in REITs in the Philippines as of this writing. This is because there are no companies yet who offer this portfolio. But, good news for those who are looking forward to investing in REIT! The government has now relaxed the requirements for REITs or the real estate investment trusts. The Philippines wants to entice the first REIT issuer after almost 11 years since it passed the REIT law. During REIT Act’s implementing rules and regulations event on January 20, the Securities and Exchange Commission (SEC) took the proposal made in the previous year to reduce the minimum public float from 40% to 33%. SEC is also requiring the reinvestment of proceeds to be acquired from the issuance to the country.