A reliable source of inflation-linked income
“These trusts must pay out 90% of their property income to shareholders every year”
One of the easiest ways to earn an income is to invest in real estate investment trusts (Reits). In their simplest form, these vehicles are investment companies specialising in buying, developing, selling and holding property.
Reits have two key advantages. First, they enable investors to access property asset classes unavailable to most individuals. For example, I hold Great Portland Estates (LSE: GPOR). This company owns a portfolio of properties in and around central London, such as the 22-storey City Tower in the City of London.
Even if I could somehow find the money to buy this sort of asset, getting hold of someone to sell to would be another challenge altogether.
These unique central London assets rarely change hands and deals are often negotiated behind closed doors. Great Portland has the connections and the funding to do the deals I’d never be able to do myself. But
