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  #1024 (permalink)  
Old 07-06-2013, 07:27 PM
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be careful of REITs. they are crashing now. a lot of people losing money on their capital. also you cant borrow to buy REITs, whereas you can for property.


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Originally Posted by Unregistered View Post
I see REITs as probably a better investments than buying a residential property and renting it out for a passive income. The advantages are

1. REITs are more liquid. You can sell quickly and you can sell part of it when you need some money. For residential property, you will need to sell the entire unit and there is a longer lead time also.

2. REITs has a higher yields than renting residential property out.

3. You can buy different REITs. Logistics, hospitals (healthcare), hotels etc...for diversification but this is not possible for owning a sole residential property.

4. You don't have to manage the property yourselves with REITs

The merits goes on...and I'll not list them one by one here.
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