What You Need to Know About DST Properties
Have you previously struggled to own property due to financial constraints? Well, you probably did not know about DST properties, but worry not. This article is here to inform you!
So, what is a DST? Delaware Trust Fund, otherwise knaown as a DST, is an investment trust fund specifically created for Americans. It is a unique way of helping Americans own homes and properties. Investors in the trust fund purchase ownership rights to properties owned by the trust, therefore having fractional ownership interest in the properties.
How to get started
To get started with a DST, you will need to get in touch with a trust company that finances DST properties and open an account with them. After you have done this, your financial advisor will ask for some important information needed to process your application. You need to provide information about yourself, including your name, social security number, age, range of the people who are going to reside in the property, and vital information about your income.
Your financial advisor will then use this information to establish how much you can afford to invest in DST properties for your first purchase. The minimum amount that someone can invest is $500. However, it is recommended that you put more than that as there is a discount percentage for those who have higher purchasing power.
After this, your financial advisor can now help you purchase a share of the property using some of your money. For example, you may be eligible for ownership of 5% of the total property.
What are some advantages of DST?
- With a direct ownership interest in a real estate property and actual equity in the asset, you can make quick decisions like selling your shares when needed. It is very easy when it comes to transferring said property. Simply list your DST properties for sale when you want to sell them and wait for a buyer.
- You get ownership of multiple properties without the hassle of managing them. You only own one share of the property, which is under management by a professional property manager. You do not need to pay any fee for this either, as it comes with purchasing your shares.
- Higher returns – you can gain up to 20% per year on your investment which is a lot higher than any other savings account yields in the market today.
- Tax-free dividends- you do not have to pay taxes on dividend payments, which means that all your returns are yours to keep
- It is a long-term investment, which means you are not required to make any large monthly payments, although this property is still generating revenue through rent payments. With this, you can build equity in the property over time which results in your DST equity rising too.
DST helps investors acquire properties. However, If you want to invest in DST properties, you must contact a qualified and experienced financial advisor. This is very important because an unqualified person might lead you on the wrong path and cause financial issues in your life.