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REITs growing in popularity

28 April 2006
New research shows that a majority of independent financial advisers (IFAs) are recommending property funds to investors, such as Real Estate Investment Trusts (REITs).

The Trusts have several benefits when compared to 'traditional' commercial property investments, such as tax advantages and increased revenue potential.

Peter Hicks, head of IFA channel Fidelity International, says the global REIT is "a big market", worth approximately $600 billion.

"REITs are invested in property but at a global level so if the value of the properties goes down somewhere, it might stay the same somewhere else," he commented.

"People are attracted by the diversification of their portfolio that REITs offer [and] for advisers, property security funds mean more liquidity," Mr Hicks added.

REITs allow investors global exposure to the property market and therefore provide greater security and a wider window of opportunity for profit.

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