What is a property investment trust?

Property Investment Trusts (PITs) can offer a diversified, liquid, and professionally managed way to invest in real estate. Using a trust as a strategy has become a popular alternative for some investors seeking to diversify their portfolios and reap the benefits of real estate without the efforts of direct property ownership.

Diversification & risk management

PITs provide an opportunity to invest in a diversified portfolio of properties, which can include commercial, residential, industrial, and retail assets. This diversification helps spread risk, as the performance of the trust is not reliant on a single property or market segment.

Liquidity

Unlike direct property investments, PITs are traded on the Australian Securities Exchange (ASX), offering greater liquidity. Investors can buy and sell shares in PITs just like stocks, providing flexibility and ease of access to their funds.

Steady income stream

PITs often distribute a significant portion of their income as dividends to investors, typically on a quarterly basis. This steady income stream is particularly attractive to investors seeking regular, passive income.

Property Investment Trusts provide a practical and efficient way to gain exposure to the real estate market, combining the benefits of diversification, professional management, liquidity, steady income, and tax advantages. For both novice and seasoned investors, PITs can be a valuable addition to an investment portfolio.

DPN recommends you seek independent financial advice from accredited and qualified providers, suitable to your individual needs and circumstances.

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