for sharing
Three Big Reasons Why I prefer to buy REITS over owning a Physical Property
1) Debt - When you purchase a condo, most likely you will have to take on a bank loan... so the debt is on you! If you fail to make the monthly payments on time you could lose your asset. When you own a reit, the debt is on the company... not you, that gives me peace of mind.
2) Diversification - For physical property, most likely you are only restricted to Residential(HDB,Condo) and Commercial(strata mall/office) segment only. However for reits you are spoiled for choices! The core 6 segments to choose from are Retail, Commercial, Industrial, Hospitality, Healthcare and Utilities.
3) Management - For reits the professional take care of everything, managing the tenants, maintenance of the asset, cash in and out flow. You just sit back and relax. I do not like going down to fix the toliet or changing the lights, I do not like engaging with tenants... that's why I choose to stick to reits as a key source in growing wealth
so do you prefer buying reits or a buying a condo?
