Like various other investment schemes, buying a property can be a profitable movement.
There are different ways to invest in a property; be the owner and run it on your own, invest via real estate online platforms, or invest via REIGS or REITS.
REIGS (Real estate Investment Groups) are ideal for owning a rental real estate without running it. REIGS are small mutual funds. A company buys or builds a set of apartments or condos, so investors can buy them through the company by joining the group. The investor can own one or more units, but the company manages all the units, handles the maintenance, and seeks to rent the vacant properties. Of course, the company receives a fee for these services.
REITS (Real Estate Investment Trusts) is a corporation or trust that uses investors’ money to purchase and operate properties. They function like any other stock, meaning REITS are bought and sold in exchanges. To maintain REITS’ status, a corporation must payout 90% of its taxable profits. By doing this, REITS avoid paying corporate income tax and they are considered as a solid investment for those who desire a stable and regular income.