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Housing Pro ยท Lesson 4

Property vs REITs

Two ways to own real estate

Professional - Gold & Platinum

Property vs REITs

In this lesson

Compare direct property ownership with real estate investment trusts on leverage, liquidity, diversification, costs and risks.

Key takeaways

  • Direct property offers control and leverage but is illiquid, concentrated and costly to trade.
  • REITs are liquid and diversified but their prices can be as volatile as stocks.
  • Both are sensitive to interest rates, rents and occupancy.
  • Compare total costs, including taxes and commissions, before choosing.
Watch this lesson with Tessa. The full video, worked example, calculator, quiz and Ask Tessa are part of Money Globe X Gold and Platinum. Create your account to start learning.

Educational information only - not financial advice.

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