Reasons to invest in REITs with nabtrade
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About Real Estate Investment Trusts
Real Estate Investment Trusts (REITs), in Australia referred to as A-REITs, are a way to gain exposure to property investments without needing to buy and manage the physical property.
A-REITs are companies that own and manage property on behalf of shareholders. They may own assets such as commercial buildings, shopping malls, industrial properties and warehouses.
The main reasons investors hold REITs include capital gains, dividend income, diversification, and professional management of the underlying property portfolio.
Pricing
| Trade size | $1,000 | $5,000 | $10,000 | $20,000 | Over $20,000 |
| Brokerage | $9.95 | $14.95 | $19.95 | $19.95 | 0.11% of trade value |
Benefits
Regular income
A-REITs can offer investors a source of regular income through distributions.
Ease of access
The minimum initial investment required for an A-REIT is $500.
Diversification
Investing in A-REITs can provide more diversification than if you were to own property directly as they tend to invest in multiple property assets.
Capital gains
The value of the units may go up in line with the sharemarket or for reasons specific to that trust.
Risks
Income risk
An A-REIT’s distributions may be reduced or not paid due to the underperformance of the underlying property.
Concentration risk
If a substantial value of an A-REIT’s assets are based in one building, suburb, city or state, you may be exposed to greater risk.
Leverage risk
Where an A-REIT uses substantial debt to fund the construction or acquisition of new property, the trust may be exposed to leverage risk.
Capital losses
The value of the units may go down in line with the sharemarket or for reasons specific to that trust.
Get started with nabtrade
Every new nabtrade customer receives:
- A domestic trading account
- An international trading account
- An integrated cash account
Additional service options include:
- nabtrade High Interest Account
- nabtrade IRESS ViewPoint
- NAB Margin Loan
- Self Managed Super Fund setup and management services
Get started today
- Apply - Complete the application form - you can select from an Individual, Joint, Company or SMSF/Trust account.
- Add cash to your account - watch the tutorial.
- Start trading - Login to nabtrade on desktop or download our app.
Funding options for REITs
There are two ways to fund your investment:
Add cash to your account
Every nabtrade account comes with a linked cash account.
Borrow to invest
With a NAB Margin Loan you can borrow to invest.
