Updated over 3 years ago on . Most recent reply
Real estate vs REIT
I haven’t dipped my toe into real estate investing just yet but was planning to do so early next year maybe. But I have a question do most of you invest in real estate for the monthly or income or for price appreciation on the asset? When looking at some of the measly cap rates around country ie low single digit % wouldn’t it just be equally beneficial to invest in reits vs potential headaches of owning hard real estate?
Plenty of Reits and reit ETFS yield 4% + and have had great price appreciation over the years, for example realty income ticker symbol O. You can own real estate with out the potential problems of bad tenants, repairs, property taxes, evictions etc.
Not trying to talk myself out of owning real estate but just trying to gage how those who have been down that road see the pros and cons of the two options. I know real estate investing is very lucrative otherwise it wouldn't be so popular. But part of me thinks why would it not be easier to just buy a REIT like O with an over 4% yield