In past articles, we have often argued that REITs (VNQ, IYR) are better investments than private real estate:
- Lower risk: They are much safer because they are well diversified, professionally managed, liquid and protect you from liability risks.
- Higher returns: Despite the lower risk, they are able to generate higher returns thanks to significant economies of scale, better access to capital, and faster cash flow growth.
This is not just our opinion. It's proven by extensive studies that show REITs have historically managed to generate up to 400 basis point higher annual