AREITs (Australian real estate investment trusts) give an individual opportunity to invest in property assets of Australia. An individual can invest in assets that would have been otherwise out of reach like large-scale commercial properties, which is a major advantage of AREITs. The Australian property market is expensive and competitive but through AREITs the investors are able to get a slice of the property pie without making huge down payment. Therefore, the investors looking to diversify their portfolio into property may invest through A-REITs and may receive a regular and consistent income stream in the form of distributions or dividends.
A-REITs can build wealth of an individual in two ways. First, the investor will get the exposure to the real estate assets that the trust owns and will also receive capital growth and the rental income, a source of passive income.
The fund managers of AREITs make the selection of the investment properties and will oversee all its administration, improvements required, maintenance of the properties and rental.
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