I recommend this article to anyone thinking of buying individual property as an investment. We’ve used real estate investment trusts in our client portfolios for many years with good results. The nice thing about REITS is they allow the investor to exit rapidly rather than becoming entangled in the often lengthy process of negotiations with a limited number of buyers a problem that characterizes ownership of individual properties. Even better, the investor avoids the hassle of property management.
“Why Real Estate Should Be in Your Portfolio”
Barron’s | Jan Willem Vis
Investors who have been inclined to dismiss listed real estate as an attractive asset class since the financial crisis should perhaps reconsider, as they could be missing out on the important roles that listed real estate can play in multi-asset portfolios. Not only can it operate as a proxy for direct real estate while generating diversified returns – with a stronger income component arising from high dividends – it can also provide some protection against rising interest rates, which may come as a surprise to some.Evidence shows that, over the long term, investment in listed real estate offers an exposure to direct real estate (including real estate physical property investments and unlisted funds) while addressing the well-known illiquidity problems associated with owning a portfolio of individual buildings. Read More
