Want to take the ownership of the property and participate the income generated by the property? If the answer is yes, then buying REIT could be an option, instead of buying physical asset.
There are numerous advantages to own the REIT over the physical asset. One need not require large capital and labor requirement, as the job already taken care by the management of REIT. Furthermore, the fund of the trust are pooled together to buy numerous properties which provide greater diversification to offset the risk of negative impact over single property.
When you buy REIT, you are essentially buying a physical asset with a long expected life span and potential for income through rental generated by the property and potential property appreciation. Since REIT require to distribute 90% of their income as dividend, meaning the holder is able to participate the profitability of the rental income.
With so many way to invest your money, stock, bond, mutual fund, property, REIT and others, it's important that any decision make should be well informed and follow with detail research if possible. REIT could be an unique type of investment that can fit to your investment portfolio.
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