Recently, the possession of real estate investment funds has been a largely difficult experience for investors.

The sector continued to present these individuals chasing the second income, on a large scale. This is partially reflects the Rit rules that require a lion’s share (90 %) of the annual rental profits that will be distributed to shareholders.

However, the price shares of these shares have weakened after the last central bank procedures. High interest rates increased in 2023 and 2024 to the net asset values (NAV) and raised borrowing costs.

Time to invest?

However, with low interest rates, it can now be an appropriate time to consider buying stocks in profit -focused investment funds. Here are three to consider a long -term negative income.

Please note that the tax transaction depends on the individual conditions of each customer and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, nor form any form of tax advice.

The highest signs

Tawheed Group (LSE: UTG) is a pioneering player in the student residence sector integrated for this purpose (PBSA). This is not only a defensive part of the real estate market. It is one where the rents flourish with the high tenant numbers.

The similar income here jumped 7 % in the six months to June, as the latest financial statements showed. This reflects both strong occupancy and leasing.

The profits are naturally sensitive to university enrollment levels in cities where UNite operates. However, the vast geographic imprint helps reduce this threat (currently operating in 23 cities in the United Kingdom).

Moreover, and FTSE 100 Planned shares of 723 million pounds Experimental student property If it succeeds, it will diversify its wallet and enhance its profits as well.

Safety first

Self -storage confidence like Safestore (LSE: Safe) have huge growth potential, driven by directions such as:

• Residents in increased urban areas, which leads to smaller living spaces
• Individuals who move to the house more frequently
• A rising culture of “storage”, where people accumulate property
• People refuse and transfer elements from the house
• Online shopping growth, increased demand for storage from electronic gatherings

Safestore is one of two real estate investment funds working in this field. I like this specific stores because 200 stores extend in the United Kingdom, Spain, France, the Netherlands and Belgium, which means that it carries less geographical risks than companies operating in one country.

Although the long -term image is bright, be sure that rental growth rates and their work can be disappointed during the economic slowdown.

Home amenities

The rents on residential real estate have slowed down. But the fixed immigration of investors from purchases means expectations for companies such as PRS Reit (LSE: PRSR) is still encouraging.

This confidence has a portfolio of about 5,500 homes. It also focuses on the family homes sector where the deficiency is particularly sharp. Consequently, similar rents increased to 9.6 % over 12 months to June, which is larger than the broader rental market.

According to the Royal Certified Sur surveyor Corporation (RICS), the number of new real estate entering the market last month has decreased at a sharp pace since the Covid-19. This is a positive icon for PRS Reit in the short term and beyond.

A possible change in the leasing regulations may reduce the revenue of confidence in the future. But until now, the conditions in this stable sector remain favorable.