One of the steadiest sources of legitimate wealth is through investments in real estate. You probably have heard that at some point and your mind immediately pictures having houses and lands in lots of volumes. You probably tell yourself it isn’t as easy as it sounds and forget totally about the idea. But here’s the truth- you also- probably- never heard that you can invest in real estate without buying property or becoming a landlord. Absolutely true! Even more, you don’t need a lot of money for this investment. Before we dive deep into this investment opportunity, let’s get familiar with it.
One of the investment opportunities that real estate offers is REITs. People hardly talk about it because lots of individuals are not aware of the possibilities locked in it. Real Estate Investment Trust or REIT (pronounced as ‘reet’) is a company that owns and, in most cases, manages property on behalf of shareholders.
Essentially, real estate investment trusts offer an alternative way to invest in property. If you’re considering investing in buy-to-let, REITs is a good option since these have the benefit of giving you access to a portfolio of properties without having to own a single house and without the complications that accompany being a landlord.
What are the benefits of investing in REITs?
1. REITs allow investors to share ownership in non-residential properties like hotels, malls, and commercial properties
2. As an investor, you aren’t responsible for properties held in a REIT
3. Individuals can make investments with any amount of money- as low as
Is REITs possible in Nigeria?
Interestingly, REITs have been around in Nigeria for a while now. In 2008, Union Homes Real Estate Investment Trusts (UH REITs) was listed on the Nigerian Stock Exchange (NSE) and has been operational since 2009. A number of credible companies such as UPDC REITs also offer investments in REITs.
To invest in REITs, you only need a trusted broker- and money to start up. REITs are traded on the NSE just like stocks. You can buy or sell REITs through your stock broker as with other types of shares. Be wary of any person or company who attempts to sell REITs that are not registered with the NSE to you. By buying from unregistered companies, you will be at the risk of being swindled by rogue stock brokers.
Investing in Real Estate Investment Trusts is a reliable way to steadily build up legitimate wealth for yourself and your loved ones.