Why Consider A REIT?

There are many reasons to consider the Somerset Estates Real-Estate-Investment-Trust (REIT). First and foremost, our shareholders receive 90% of all rental profits from propertiesin our portfolio. As a REIT, we are legally bound to pay this to you.

But investing in a REIT is about more than enjoying profit-share: it’s about removing the stress associated with property ownership. If you’re a Buy-To-Let Landlord (BTL Landlord), you have probably experienced first-hand the stress of buying, managing and selling properties.

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Direct Property Ownership Vs. Shares In A REIT

If you’re looking to derive an income from property, it’s worth evaluating your options. You may wish to manage your own rental property portfolio - however, there are many challenges associated with direct property ownership.

The Somerset Estates REIT offers you a way to enjoy an income from the Private Rented Sector, without the hassle of owning your own properties. See the comparison table below to better understand the opportunity presented by the Somerset Estates REIT.

Direct Property Ownership

Full responsibility for management, profit and loss of your rental property business

Shares in the Somerset Estates REIT

Receive an income from a large rental property portfolio in the form of Property Income Distributions

Subject to a changing tax landscape.
  • BTL Landlords may see their rental income drop, as the Section 24 removal of mortgage interest relief is cutting profit margins.
Tax efficient form of property investment.
  • REITs are currently exempt from UK corporation tax, and our portfolio is shielded from the removal of mortgage interest relief. Our shareholders benefit from this tax-efficiency.
Ever-tighter lending criteria
  • Tougher lending rules may mean you could find it harder to reach affordability criteria and access the funds to grow your portfolio.
Lower financial barriers to entry
  • Somerset Estates REIT offers you access to property investment vehicles with minimal entry outlay.
Compliance costs time & money
  • Pressure to comply with regulations is increasing for BTL landlords. Achieving compliance is time-consuming, and often costly (and, if not done correctly could result in court action.)
Hassle-free investment
  • We take care of regulation and compliance throughout the portfolio, so our investors can enjoy a stress-free income from property.
Low liquidity assets
  • Selling your properties takes time, and money. If you need to access funds tied up in property, you may need to drop your asking price - eating into your profit margins.
High liquidity assets
  • If you need to raise cash, it is swift and simple to trade your shares in the Somerset Estates REIT on the stock market. No lengthy sales period, and no stressful negotiations with estate agents.

Want to find out more about investing in the Somerset Estates REIT? Our expert team are happy to have an informal chat - leave us your details and we’ll give you a call.

If you already have a portfolio of BTL properties, you may benefit from exchanging your properties for shares in our REIT.

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