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You don't really need to do both to diversify. There is a lot of exposure to real estate in the stock market (rental companies + commercial real estate + constr
by asfasgasg 9y ago
You don't really need to do both to diversify. There is a lot of exposure to real estate in the stock market (rental companies + commercial real estate + construction), and REITs can be used to gain more exposure if desired.
- toomuchtodo 9y agoI can manage my real estate risk better (IMHO) in a rising interest rate environment better than a REIT can (and I find most REITs to be overvalued, specifically O). My cash on cash returns are better as well.
- curuinor 9y agoYeah, but can you diversify by location better by yourself than a REIT? Lots of cases of individual cities and neighborhoods going to pot while the rest of the nation and world prosper
- toomuchtodo 9y agoMy goals differ from a REIT slightly in that I want a quality return on investment, but also want to be able to live in my properties around the world as time permits (I’m a remote worker). Returns vs utility is an acceptable trade off for me.