Investing in Real Estate without millions: how REIT Funds work

Investing in Real Estate without millions: how REIT Funds work

Investing in Real Estate without millions and without buying a flat is possible. If passive income from renting out residential property was once considered the norm, investing through REIT funds is now gaining momentum. The flagship funds on the market already manage assets worth over UAH 1 billion.

Counsel and Head of the Real Estate Practice at EVERLEGAL Oleksandr Demchuk explained to MC: Money & Career how it works, what the advantages and risks are, and which key players are active on the Ukrainian market.

Key insights:

• An individual investor gains the opportunity to become a co-owner of a large commercial property that generates higher returns than a residential flat
• The investment threshold starts at literally a few hundred hryvnias
• The management company is subject to ongoing monthly oversight by the NSSMC, an approach similar to the NBU's supervision of banks
• A REIT fund is exempt from corporate income tax; taxes are paid only on dividends at a rate of 9%, rather than 18%
• The most significant risk is insufficient liquidity of certificates, particularly during periods of crisis when many investors seek to sell their assets

Read the full article at the link.

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