Reits will widen property investment opportunities

property

Investors are liable to double taxation when they invest in property unless they opt for direct investment, which involves sums too large for most investors. However, if Reits are introduced investors may have a tax efficient way to invest in property

Once their final structure has been agreed and the Government is satisfied that their objectives will be met, Real Estate Investment Trusts (Reits) will be launched - probably in 2006. Reits are not a new idea as they have been available to investors in the US, Australia, Japan and much of Europe for some considerable time, but the UK is being rather slow introducing them. So why are they being introduced now? The Government has ambitious house building plans and Reits are seen as one means of raising productivity in the UK property market. However, they will not be constrained to ...