Besides the predominant problems in emerging real estate markets that we have addressed, we have also identified an area where there has been much interest from traditional investors but have yet been able to be resolved, Real Estate Investments Trust (REIT).
Investing in income-generating real estate can be a great way to increase your net worth. But for many people, investing in real estate, particularly commercial real estate, is simply out of reach financially. But what if you could pool your resources with other small investors and invest in large-scale commercial real estate as a group? REITs (pronounced like “treats”) allow you to do just that.
REIT is sometimes called “real estate stock.” Essentially, REITs are corporations that own and manage a portfolio of real estate properties and mortgages. Anyone can buy shares in a publicly traded REIT. They offer the benefits of real estate ownership without the headaches or expense of being a landlord.
Investing in some types of REITs also provides the important advantages of liquidity and diversity. Unlike actual real estate property, these shares can be quickly and easily sold. And because you’re investing in a portfolio of properties rather than a single building, you face less financial risk.
In order to open up this type of investment options to the mass public, the IAT Platform will offer individuals and smaller scale developers to have the options of listing their portfolio on the platform which will be similar to a REIT where interested parties can participate.
Emerging markets with a sound master planning by their government has shown great potential in capital appreciation over time but is usually flooded with overseas investors and the local citizens tend to lose out on the opportunity by not being able to invest in their own growing market.
At the current moment, there has been talks about launching REITs via the traditional stock exchange platform in emerging markets such as the Philippines and Cambodia, but the lack of regulations has proven difficult to do so. This presents a huge opportunity and IAT will be looking to integrate this into the platform.