Is REIT going to help investor in property

Q: I am planning to buy property in Palghar should i wait for REIT Is REIT going to help investor in property

suresh, Apartment Resident

14th August 2015

Buying property in Palghar, Mumbai

reits

residential properties in palghar

Follow Discussion

Also see discussions for

Mumbai Palghar Buying property Buying property in Mumbai Buying property in Palghar

Replies (2)

As i know, it is an investment trust where an individual can invest either by purchasing their shares directly on an open exchange or by investing in a mutual fund that specialize in public real estate.

An added benefit to investing in REITs is the fact that many companies are accompanied by dividend reinvestment plans (DRIPs). Among other things, REITs invest in shopping malls, office buildings, apartments, warehouses and hotels.

Sandeep Mhatre, Mumbai

11th September 2015

Comment

We are waiting for the cabinet approval and once it will approve by the cabinet, i am sure that the measure which are taken will boost fund flows and make the way strong for inciting much needed changes into the realty market. This move will also speed-up construction activities.

REITs are instruments which allow owners of rent yielding assets (commercial and retail) to raise money from investors by pooling and listing them as a trust.

Abhinandsavalla, Mumbai

11th September 2015

Good Morning Suresh,
India needed REIT as there is a slowdown in market, and real estate industry is starving for capital. If REIT comes, will help generate liquidity, and push real estate, infrastructure and construction industry to regain their activities.

Secondly, lot's of fraud cases have seen earlier such as delay possession, insufficient fund to start the project, change of floor plan, hidden charges for the property which disappoint buyers. Sometimes a buyer has to wait more than 5 years for getting possession. And if you choose the legal path then it will take another 5 years to get your property back.

Abhinandsavalla, Mumbai

17th August 2015

Comment

Right Abhi,
If REITs comes in India, ensure transparency as investors know what is being bought, including the property's current value. They also have a realistic income expectation from their investment. It offers approachability to invest in real estate for those who find it difficult to buy real estate as an investment option.

It invests money obtained from investors directly in real estate, either through properties or via mortgages.

Ketalpujara, Mumbai

17th August 2015