4 ms·
The benefits of investing in individual properties are: - Other people's money (leverage via loan) - Tax write-offs (interest deduction, expense shelter, depr
by ww520 14y ago
The benefits of investing in individual properties are:
- Other people's money (leverage via loan)
- Tax write-offs (interest deduction, expense shelter, depreciation).
- Appreciation.
- Equity growth.
- Rental income.
The first two probably can't be obtained via REIT.
- skorgu 14y agoThere's a bit of a tail risk benefit too: the utility of a house is somewhat uncorrelated to the rest of the financial market. I.e. in 2008 when the world was utterly insane your house still kept rain off your head. It's easy to overstate but it's a thing.