There are many good reasons why you should park your money in a safe sector like that of REITs. If you are not convinced just yet or if you want to balance the positive and negatives, we have a list with top reasons why you should invest in REITs:

• Affordability – REITs investments cost less than traditional real estate investments
• Liquidity – one of the best reasons to invest in REITs is that you can easily exchange REITs on the stock exchange if you need liquidity. This is not true when investing in traditional real estate properties
• Great dividend yield – dividends in REITs are great thanks to the favorable regulations for investors. The sum you could actually get from your investments is similar to the rental income you would get if you owned your own property.
• Diversification – the greatest thing when investing in REITs is that you get to test a diversified market and can invest your money in different types of properties. This way, you will see which one works better and test out different sectors. It is a lower risk practice than putting your money all in one place.
• Professional management – instead of having to deal with the hassle of managing a property yourself, with REITs you leave that to someone else as a professional management team is there to handle things for you while you can focus on future investments

Now that REITs are clearer to you, what it means to invest in REITs ? you should get informed on the regulations about REITs in Oman. In Oman, as in many other countries where REITs operate, there are certain rules in place that are meant to protect investors. For example:

• REITs are safe investments, so these trusts are not allowed to borrow up more than 60% without further approval from unit-holders.
• REITs are exempted from income tax with one condition – they need to distribute 90% or more of the taxable income to the unitholder. This translates into higher dividends for investors, which makes REITs one of the best choices if you are looking to invest in Oman.

• REITs can contribute substantially and remarkably to growth, accountability, and transparency in the real estate sector of the country.
• Providing less risky investment options in real estate to small and big investors, regular and dependable income to the unit holders
• Can be effective to hedge against inflation
• Drawing massive FDI in the real estate sector of the specified country
• Increases participation from the private sector which, in turn, will help stimulate the development of vacant land and raise the real estate sector’s contribution in overall GDP
• Providing exit avenue and liquidity to the cash- strapped property developers
• Huge contribution to the national GDP of the mentioned country
• Lowering a country’s unemployment rate as the introduction of REITs will create employment opportunities both directly and indirectly
• Increases the effective demand of real estate while increases the supply of real estate
• Increases ownership in real estate amongst the locals.