EP 034: Q&A: Investing in REITs

I remember a friend of mine sharing their experience with the first tenants of their first investment property…
Let’s just say he had ‘flowery’ words about them

Even to the extent that he was second questioning if he actually made the right decision by investing in property.
(Ahh, the side of property they don’t tell you.)

So, in summary, the tenant had broken an air conditioner…

Which turns out to be the third item that he was going to pay to get repaired in just under 4 weeks.

There were a few sentences that I remember him sharing, which have been burnt into my brain:

“How the F$&K do they break so many things?”

“I use the appliances in my house without ever breaking them. Why can’t they?“

“With all these expenses, when will we see profit?”

“If this is what it’s like to be a property investor, I have no idea how people get to 10 properties”

Not a great experience.

BUT let’s be real…
As if you haven’t shared that feeling too?

You may have even said those same sentences.

We’ve all been there,
I know I have.

Which got me thinking…
Is it possible to invest in property without dealing with these situations?

Something that is truly passive and doesn’t require someone to manage them,

But still with access to the leverage of debt, compounding interest, cashflow, etc.

That is when I came across:

Now, if you don’t know…
A REIT stands for: Real Estate Investment Trust.

I found out that there are REITs for almost everything.

There are REITs that invest in industrials, offices, retail, medical, hotels, entertainment venues, and more.

REITs even have various types of structures…
Some operate like trading shares, while others are like an investment fund, some are private, and some are public—and everything in between.

But most of them allow you to be exposed to property without having to manage the properties yourself, without dealing with banks, coming up with deposits, or optimising your borrowing capacity.

In other words:
No more calls for broken air conditioners! 😅🥳

REITs also give investors a way to invest in multinational brands that operate in a unique niche.
Something like warehouses or large shopping malls (like Westfield).

Now, I need to emphasize that REITs come in all different shapes and sizes.

Every investor MUST know the risks of the specific REIT they want to invest in BEFORE they get into it.
(I recommend that you seek professional advice before making any investment decisions.)

It’s on you to work out if they would be a valuable asset to exist in your portfolio.

And, this is why I have dove deep into the topic, as it comes up all the time.

So jump on and listen to Grant and I discuss REITs: 


All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision.

Episode Highlights:

00:00 Welcome to Property and Investing
05:07 What is a REIT?
06:42 Investing in real estate when you’re overseas
09:10 REITs vs syndicates in property investing
10:43 Different REIT strategies
17:41 Venture capital funding and REITs
20:50 Difference between REITs and companies 
24:34 The biggest trade-off in buying property on your own vs REITs 
30:09 What level of control do you have over REITs?

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