Interesting investment to consider with your deposit money - a residential REIT

Brendan Burgess

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One of the problems facing people saving up to buy a house is that they feel that house prices will rise faster than they can save. They keep their money in a deposit account earning 1% interest. If prices rise by more than this, their savings become a lower percentage of the house price.

A new REIT is being launched which will invest in residential property. This will be like a share trading on the stock exchange. If house prices go up, this should also go up. If house prices fall, this will fall in value.

Investing in any one share is risky, but it's worth considering.


 
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You could end up losing your deposit if prices fall! Too risky to be advising these as suitable for someone saving for a house
 
Can anyone confirm the tax treatment of REITs? Is it similar to a managed fund or an individual share/stock?
 
Assuming you are an Irish resident for tax purposes, you pay ordinary income tax (PAYE + USC + PRSI) on the dividends, and Capital Gains Tax on any gains when you sell the shares.
 
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