by Melih Alsaç
Real estate certificates are used in the international literature SUKUK is a financial instrument known for its "buy, lease-back" principle. SUKUK offers investors the opportunity to invest in real estate while earning a regular income through rental income. This article will discuss in detail what SUKUK is, how it works and the advantages it offers to investors.
What is SUKUK?
Sukuk is an investment instrument that aims to benefit from the rental yields of real estate. When a bank wants to liquidate its head office building, an asset leasing company that issues SUKUKs steps in. The company buys the building and leases it to the same bank. It tells investors, "We have purchased the head office building of bank X for USD 100 million. This real estate will generate an annual rental yield of USD 10 million. In addition, we have a commitment to sell this building back to bank X for USD 120 million after 10 years."
Investors can earn regular rental income by investing in small shares of SUKUK and sell these shares on the stock exchange. SUKUK is generally known as a rental yield-oriented investment instrument. This instrument offers investors the potential to generate regular income and is therefore highly attractive.
Who is eligible for SUKUK Investment?
Governments can choose to use SUKUK to finance public buildings. Small investors can also invest small amounts of their savings in these instruments. Thanks to the regulations of the Capital Markets Board, investors can easily convert their assets into cash. For more information, please visit the Capital Markets Board's website you can visit.
Advantages of SUKUK Investment
- Regular Income Streams: Investors receive regular rental income through SUKUK.
- Accessibility for Investors: Even small investors can participate in the real estate market by investing in SUKUK.
- Financial Assurance: SUKUK is backed by a government guarantee when used to finance public buildings, offering a safe investment vehicle for investors.
Conclusion: SUKUK is a financial instrument that offers new opportunities to small investors by democratizing participation in real estate investments. It offers the potential to provide investors with regular income and can be considered as an indicator of financial development. While it remains to be seen how the field will evolve in the future, SUKUK will continue to be one of the attractive options that financial innovation offers for investors.
Frequently Asked Questions (FAQs)
1. What is SUKUK?
SUKUK is a real estate investment instrument that aims to generate income through rental income. It is particularly known for its "buy-back, lease-back" model.
2. How does SUKUK investment work?
Investors can benefit from the rental income of a real estate property by investing in SUKUK in small shares. SUKUK also involves selling the real estate back after a certain period of time.
3. Who is eligible for SUKUK investment?
Small investors can invest in SUKUK, even with small amounts of savings. Governments can also use SUKUK to finance public projects.
4. What are the advantages of investing in SUKUK?
It offers advantages such as regular rental income, accessibility for small investors and government guarantee.
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