Guide on how to buy a property
You don’t need deep pockets for investing in property. REITs will allow middle-class investors to participate in the real estate market. With Sebi issuing final guidelines for real estate investment trusts (REITs), you will soon be able to get a piece of the action in the property market with as little as Rs 2 lakh. REITs are just like mutual funds, but instead of using the money collected from investors to buy stocks and bonds, they invest in property.
After more than a decade of discussions, this unique form of mutual fund is finally taking shape in India. Last month, the Union Budget removed an important hurdle by giving pass-through taxation status to REITs. Last fortnight, market regulator Sebi issued final guidelines for REITs, settling several of the concerns raised by the real estate industry. Industry watchers claim that the launch of REITs will increase the flow of funds to the cash-starved real estate industry.
Even if half of the currently available Grade A office space gets converted to REIT and is listed in the next 2-3 years, it can mean an inflow of Rs 60,000-72,000 crore as stated by Anuj Puri who is the chairman and country head, JLL India.
Source: Economic Times
Buying a property, guidelines for REITs, investing in property, Property Buying, Real Estate Investment Trusts
