Real estate investment trusts (REITs) have become increasingly popular in the UK. A REIT is a company that owns, operates, or finances income-generating real estate.
REITS represent a unique investment proposition for both institutional and retail investors.
Modelled after mutual funds, REITs combine the capital of multiple investors. This makes it possible for individual investors to earn dividends from real estate investments—without the onerous activity of buying, managing, or financing any properties themselves.
REITS for the most part provide a return substantially higher than that of most equities or bonds. Therefore they are very attractive to retail and institutional investors alike. Supplementary to that a large cross section of investors will only consider property-based products, this is mainly due to security and tangibility.
REITS allow investors to invest directly into property without the onerous task of having to locate tenants, draw up contracts and collect rents.
According to Google Trends the interest in REITs as an investment product has tripled in the last 3 years alone.
In summary, investment suitability comes down to the individual criteria of the person(s) investing. But for customers looking to achieve passive income while still maintaining the security and risk adversity of investing in real estate, then yes REITs would be considered a good investment choice by a large percentage of the market.
New capital link from its inception has always specialised in real estate investments, from large commercial pre-planning sites to muli block residential units, its always been a staple of the NCL investment product suite.
It’s because of these past relationships, that makes NCL so uniquely placed in the Sector. Because of our notoriety within alternative real estate investing, we are inundated with requests from developers to raise capital on their behalf. That being said of the 2000+ requests we had last year, coupled with our extremely rigid investment criteria, we have only proceeded with three companies.
Each of the companies meets our own internal metrics and has provided well above industry-standard returns for our client base.