– Real Estate Investment Trusts (REITs) allow you to invest in real estate without owning property. – Managed by professionals, offering steady returns.
– Buying physical properties like houses or land. – Offers control but requires higher capital and management effort.
– REITs: Start with small amounts. – Real Estate: Requires significant capital upfront.
– REITs: Highly liquid; buy or sell easily like stocks. – Real Estate: Low liquidity; takes time to sell property.
– REITs: Market-linked risks. – Real Estate: Risks of depreciation and maintenance costs.
– REITs: Steady income through dividends. – Real Estate: Higher returns if property value appreciates.
– REITs: Hands-off investment, managed by professionals. – Real Estate: Requires time for maintenance and tenant management.
– Real Estate: Tax deductions on loans and maintenance. – REITs: Dividend income is taxable.
– REITs: Great for passive income and diversification. – Real Estate: Ideal for long-term wealth creation and control.
– Both options have unique advantages. – Choose based on your financial goals, capital, and risk tolerance.