SBAC - Why I Quit Buying Rental Properties To Buy REITs Instead
2024-06-22 07:30:00 ET
Summary
- REITs are better investments than rental properties in most cases.
- They are not only safer, but they are also more rewarding.
- Even then, many investors favor rental properties due to misconceptions. Let's correct them once and for all.
Last August, I explained in an article why I think that REITs are better investments than rental properties in most cases.
In short, studies show that REITs are more rewarding investments because they enjoy:
- Significant economies of scale
- Better access to capital
- Development capabilities to earn better yields and create value
- Additional profits from offering services to other investors
- Better relationships with tenants, contractors, lenders, brokers
- The best talent in real estate works for them
- Faster growth prospects from issuing shares at a premium and/or buying back shares at a discount, taking advantage of capital market dislocations