MAA - Why I Buy Rental Property REITs Instead Of Rental Properties
2024-06-03 08:14:00 ET
Summary
- Many investors - including several of my friends - like investing in rental properties.
- However, I have chosen the path of rental property REITs instead.
- I share 8 major advantages that rental property REITs enjoy over buying rental properties directly.
- I also share one of my top rental property REITs of the moment.
Investing in rental properties is a very popular way to compound wealth over the long term because it enjoys numerous benefits that deliver attractive long-term total returns for investors. First of all, you get a steady passive income stream due to the monthly rent checks that come in from your tenants. Second, over the long term, real estate, especially in regions with strong population growth trends, tends to appreciate. This appreciation, combined with the income stream, delivers attractive total returns. Moreover, real estate properties often offer significant tax benefits, including deductions for depreciation, mortgage interest payments, property taxes, operating expenses, and repairs. Additionally, real estate is fairly easily leveraged at attractive rates, which can further enhance the cash flow yield and long-term appreciation relative to the equity investment....
Why I Buy Rental Property REITs Instead Of Rental Properties