Sounds like an amazing opportunity of a guaranteed return on investment, I wonder how much the shares will be...

Is there a web site on the prison investment REIT? An RSS feed somewhere? How would we find out more about it, like when the shares will be issued once it is agreed that it will go ahead?

Hi Telea. No website yet, sorry. In fact, the Home Secretary may not survive his position in Government long enough to do anything at all, if recent events are anything to go by. The REITs prison idea is one of several the Government are considering, so expect a news announcement over the next few weeks. This kind of REIT has been applied in the USA for some years and seems to work well for everyone involved, though there are some disadvantages when compared with the more familiar and more straightforward property investment (though even these are offset by unique REIT tax advantages). We'll all just have to wait and see whether Government go down this route.

If it does go ahead, it would surely be a property investors dream come true, guaranteed rental return, no tax, no tenant problems, no maintenance, actually it's just like buying a share in a company and getting a Dividend within an ISA wrapping. Is there any difference between the two, REIT vs Company Shares within an ISA or similar tax free investment? Also 5% is not that great, unless that's a minimum? what do you think?

Absolutely I agree. REITs only complication is they are more volitile than direct property investment, since they are influenced by economic factors as well as property market forces. But on the face of it, this scheme sounds good and I for one will be interested to read the fine detail, if and when. Of course, Government has only just introduced REITs as a new form of investment package for the UK) and it could be the level or style of tax incentives will not last indefinitely.

Well, I shall be investing in this REIT if it happens and would like to stay informed, so I hope you will put something in the Property Secrets email as soon as you hear of any further developments! As far as tax breaks are concerned, if the Government do decided to make it tax free, obviously it will be for at least one full tax year, so it may pay to be in it until such time as the tax incentive is taken away (after that it would not be worth it at around 5%). I wonder if there will be any fees to pay to 'join' or exit fees if it doesn't pay well?

Will you be putting news of any further developments in the Property Secrets emails as soon as you know please?

Yes, I'm happy to update everyone on Property Secrets via the Property Investment and BTL forum with any new information that comes to light, so watch this space!