Real estate investment trusts have "held up well" - commercial mortgages

08 October 2008

Every investor should have some commercial property in their portfolio and one method of entering the market offers more security, it has been claimed.

Dave Butler, the head of external affairs at financial advice organisation Reita, has stated that in the commercial sector, Real Estate Investment Trusts (Reits) are the best area to buy into at the moment.

Reits - companies that own and run properties on behalf of shareholders - allow people to invest in property without having to buy it directly.

They could be a good way for those with commercial mortgages to enter the market while minimising risk.

Mr Butler commented: "Over the last month or so, while markets have been very volatile, Reits have actually held up very well."

He added that Reits currently offer the "better bet" out of the commercial property investment opportunities available.

Reits can also apply for 'UK-Reit' status, which means they are exempt from corporate tax, according to the London Stock Exchange.