How REITs Are Different From Direct Real Estate Investments? Should You Invest?
How REITs Are Different From Direct Real Estate Investments? Should You Invest? REITs, or Real Estate Investment Trusts, are businesses that own and operate real estate holdings in order to generate income. A REIT, unlike other real estate businesses, does not construct properties with the intention of reselling them. On the other hand, REITs purchases and develops properties largely for the purpose of operating them as part of its investment portfolio. They are businesses that handle real estate and mortgage portfolios of great value. Individuals can participate in large-scale, income-producing real estate through REITs. Why should you diversify your investment portfolio with REITs? Difference between Direct Real Estate Investment and REITs In REITs , investors are investing in a diversified portfolio of commercial real estate assets. With the direct investment route for commercial office spaces, investors invest in a single office property....