It may be a good investment for some people but there are too many risks, liquidity issues, and hassles owning and maintaining real estate for me.
I prefer to own quality REITs with decent yields.
I prefer to own quality REITs with decent yields.
When we were younger we invested in BOTH stocks and RE. The RE did a lot better than the stocks because we could put sweat equity into it. We did all the maintenance, management, selection, market surveys, etc. And upgrades, we did a lot of upgrades.
Go ahead, tell me how you do that with a REIT. Do you head over to their apartment and offer to cut the grass? How about change out the dishwashers?
Now that we have to hire those things done for us -- both age and number of properties have increased, returns are about the same as REITs, but that big early boost to returns was a huge benefit.
These days stock portfolio is about equal to RE portfolio, but there is great wisdom in investing in BOTH.