Investing - The "REIT" Way
When building an investment portfolio, the most feasible way is to put the money in various assets to spread the risk and ensure higher returns ( Refer: all-weather portfolio ). One such popular investment in India is real estate due to its hedge against inflation and significant capital appreciation. However, it also has its own challenges – no geographical diversification, considerable investment outflow, and limited liquidity. (will be discussed further). It is a common misconception that purchasing a property directly is the easiest way to invest in a real estate asset. Doing so can yield desirable total returns and excellent tax benefits; however, not all real estate investors have the time, expertise, or resources needed for a direct purchase investment. REITs offer an alternative that allows investors to achieve the benefits of real estate ownership but without the hassle of finding, purchasing, and managing a property. But there are reasons why not to invest in REITs. In this