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Guide to Smart Real Estate Investing Through REITs
Hands-free Real Estate• 11 min read
Buying physical properties requires mortgages, dealing with tenants, and paying for expensive maintenance. REITs allow you to invest in thousands of residential, commercial, and industrial rentals worldwide with a single click.
1. The Tax Secret of REITs
REITs enjoy massive corporate tax exemptions in exchange for an unbreakable legal condition: they must distribute the vast majority of their net rental income (usually 90%) directly as cash dividends to their shareholders.
- Immediate liquidity: sell your shares in milliseconds on the stock exchange.
- Superb diversification: own a piece of Amazon fulfillment centers, medical hospitals, and residential complexes globally.
- Consistent income streams that naturally hedge against inflation.
SafeInvest Professional Tip
Incorporate 5% - 10% of global REITs into your portfolio as an excellent asset class that is decorrelated from technology-heavy stock indexes.