Checklist: REITs versus direct ownership

Check List Check List

Here’s a list of pros and cons related to owning real estate directly and owning REITs as an alternative.

Preview of Checklist: REITs versus direct ownership

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Checklist: REITs versus direct ownership

Real estate investing begins with a big decision: direct ownership, exposure through Real Estate Investment Trusts (REITs), or a mix of both?

Key benefits of REITs include:

  • They allow you to enjoy the advantages of real estate investing without the headaches that come with owning a building, like maintenance and tenant management;
  • They give you the opportunity to share ownership in properties you otherwise wouldn’t be able to own, like large shopping-mall complexes and apartment buildings;
  • They make it easy to own property in different parts of your own country, or in other countries altogether.
  • Imagine the hassle involved in owning an apartment building in another province, or a strip mall in Oklahoma;
  • They offer a consistent, tax-efficient income stream; and
  • REITs let you own an extensive portfolio of properties, while direct ownership offers a more limited range of holdings for most investors.

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