Sunday 22 July 2012

Is REIT an Islamic Concept

Launch to Conventional Real Actual estate asset Financial investment Trusts (REITs)
The concept of property or home believe in is awesome. It gives a probability to investors to produce profits in an different way. In this kind of financial investment the investor purchases security and provides it the way stocks are exchanged. This kind of financial investment can be immediate or indirect. That is determined by the kind of REIT as there are further groups of that.
REITs are different from it in concrete property or home through purchasing through bilateral transactions. It has nothing to do with the financial investment techniques in concrete property or home development techniques. That kind of financial investment often results in the concern and reduce at the end of investor. There is no assurance that group is going to produce anything out of that or whether it will result in the impediment of financial investment. In assessment REIT is a more secured way of financial investment with having better opportunities of income.
An advantages of REIT financial investment is that a smaller investor can easily manage to obtain it. In the same way the process of financial investment is clear and there cannot be any taxation problems.  In most situations there is no taxation involved on the income obtained by investors in many countries. The process of developing financial investment techniques and producing is secured and secured. There is an comparative probability of producing given to all investors which make it affordable play at the end.
A great factor about REIT is that the investors get profits and income even if they do not provide their financial investment techniques. That indicates if an investors goes in reduce, he/she is not accountable to provide it. Rather he/she can sit and like the profits for the times to come until it gets a income progressively.
One of the problems in traditional property or home techniques is that the investor has problems in getting the specific property or home liquidated in the times of need. Such kind of problem does not are available in case of REITs. The reason is that the REITs can be liquidated at any time into cash. They are interchanged the same way stocks are interchanged in the currency markets trading markets.
One thing that makes many investors worried to company in the inventory trading markets is the motions. Trading markets all over the planet are usually unforeseen and there are opportunities of getting a loss of them. However when it comes to REITs then this kind of financial investment is relatively less unforeseen and there are less opportunities of an investor getting a reduce.
The structure of REIT is very just like the one that is of common sources in the inventory trading markets. In most countries the REITs are restricted to pay a considerable number of come returning to the investors. For the same aspects this kind of financial investment has no tax on the come returning in many countries. That progressively makes it secured and secured for the investors often.
1.1-    Historical Record of REITs
The concept of REITs is not new. It showed up in the end of Nineteenth century century as a system that can save the investors from double taxation. There was taxation at the company level as well as at the individual level in such times. This concept initially served many people in the avoidance of double taxation while progressively it led to the success. It started from USA and now it has been used in many countries all over the planet.
Some of the countries that are increasing in REITs these days contain Canada and the united states, Contemporary modern australia, Finland, People from france, Malaysia, Japan, Native indian, Pakistan, Ghana, Hong Kong, Malaysia, Nigeria, UAE, Singapore and UK. All these countries have their own recommendations regarding REITs. In the same way they are following their own techniques according to their own customs and customs. Most of the countries depending on REITs are lately applying this concept. This concept became well-known on the planet in newest years. For the same aspects this concept has not been presented in line with the principles of Shariah.
REIT’s are not mainly applied by the Islamic world so far. There are only few countries that are currently depending on this concept but they are doing it the regular way. There is a highly effective need of developing the concept of REIT qualified with the rules of Shariah. The concept of Halal and Haram should be effectively examined to bring this concept in the aspects of Shariah. In this respect the Islamic Scholars due to various organizations of thoughts should also be mentioned. Probably that way a new measurement of REIT will be investigated which can be useful for the Islamic world as well as for the european.

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