The means of asset formation include
There are various ways to do this.

In recent years, there have been many new investments such as Tsumitate NISA and iDeCo.
Investment taking advantage of tax benefits is also active.

In addition, traditional investments such as stock investments and real estate investments
It can be said that it is being actively utilized.

Among them, if we further subdivide real estate investment,
Apartment investment, parking lot management, etc.
Although they are classified as J-REITs,
It is treated as a real estate investment.

So, what kind of investment is J-REIT?
Will you point it out?

Also, what are the advantages and disadvantages?
Is there one?

In this article,"J-REIT"We will explain about:

 

J-REIT is a type of real estate investment.
Raising funds from multiple investors
Use the funds raised to purchase and manage real estate
It refers to the method.

And the profits from the purchased property
Rental income and profits from sales
The system involves paying dividends to investors.
Stock investment trusts and bond investment trusts
It has the same structure as real estate investment trusts
It is called.

Purchasing and managing properties
They are all called fund managers.
It is left to the operator’s hands,
You are free to manage the property yourself
There is no need to modify it.

We will use the funds we collect to purchase multiple properties,
The fact that you can receive dividends relatively stably
It can be said to be a characteristic.

 

So how does this J-REIT compare to other investments?
What are its characteristics?

In the table below, some
Investment methods and comparisonLet's try.

Compared to real estate and stock investments,
It is a low-risk, low-return product.

If I had to choose one,
Before you start investing in real estate
Studying the real estate flow through J-REITs
Some people use it for introductory purposes.
It can be said that there are many.

 

 

J-REITs are also investment trust products.
More than stock investment trusts and bond investment trusts
It is still not very well known among the general public.

From here, we will use J-REITs
meritorDemeritabout
Let me explain.

 

▼Benefit 1
Investment possible from small amounts

Real estate investment is
We purchase and manage real estate, so the initial capital is
It will inevitably be expensive.

Borrowing from financial institutions,
It is not uncommon for it to be put into operation.

However, J-REITs
It is possible to invest small amounts.

Since investment is possible from around 10,000 yen per share,
There's no need to borrow.

The advantage of being able to invest from a small amount is
This can be said to be a major advantage.

 

▼Benefit 2
Diversifying investments to reduce risk

As mentioned above, in the case of real estate investment,
Buy a property
It is an investment that earns investment income,
Since it will be managed in one property,
There is something wrong with the property
Ideally,
There is no operational profit.

In the case of J-REITs,
We purchase and manage multiple properties,
Even if a problem occurs with one property
Can be covered by other real estate
Investment can be diversified.

The risk can also be reduced
This is a major advantage.

 

▼Benefit 3
Management is carried out by real estate professionals

People with no experience in real estate investment
Suddenly investing in real estate
You will feel very scared.

In cases where people are hesitant to invest in real estate
Because I have no experience
There are so many reasons.

However, in the case of J-REITs, the management is
Real estate investment professionals
Fund manager.

All about operation
This is done by the fund manager,
You don’t need to worry about operation.

As an introduction to real estate investment
I mentioned utilizing it, but
Managed by fund manager
But that's the biggest reason.

For those who are new to real estate investing,
This can also be considered an advantage.

 

Disadvantages 1
No say in operation

The advantage of leaving all the management to the fund manager is
It is beneficial for those who have no experience,
Disadvantages for those with some experience
It seems that sometimes you feel this way.

If you are not getting the profits you expected,
In cases where the operation is negative
Regarding the fund manager's management method
The things I can't say
It would be a disadvantage.

Disadvantages 2
The operating company may go bankrupt

The operating company may go bankrupt.

Unless the business scale is certain, J-REITs cannot
However, we cannot handle J-REITs.
Real estate investment corporations have gone bankrupt.

There was a case of bankruptcy
The Lehman Shock of 2008.

When a real estate corporation goes bankrupt
The J-REIT will be delisted.

All the real estate purchased through J-REITs has been sold.
The proceeds from the sale will be distributed to investors in proportion to the
It will be returned
Since it is not a principal guarantee,
There is also no denying the possibility of a major loss.

 

in this way
There are advantages and disadvantages,
A clear understanding of the characteristics of J-REITs
Please be aware of this.

 

next timeHow to buy J-REITsToWe will explain about this.

 

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