The quality of the asset will determine the return. An investment of less than 5% in a domestically controlled REIT will save on FIRPTA tax when the shares are sold. Note that the investment may raise other tax issues, so a qualified advisor is necessary.
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For individual foreign investors, which option brings better investment returns: a REIT or investing in a particular development project?
What are the advantages and disadvantages of each? Which do you prefer for your clients?