AI Global Excellence Awards 2016

Acquisition International - Global Excellence Awards 2016 11 It’s a Good Time to Invest in Real Estate REIT vs direct investment A REIT offers flexibility, diversification, liquidity, and simplicity. Flexibility: adjusting the amount you invest to your financial resources (rather than stretch yourself to put all your savings into one asset). Diversification: In a REIT, you get a basket of properties with their diverse income streams rather than putting all your savings into one building with a concentration of tenant and asset risk in one property. Liquidity: Trading shares in a company is far easier, cheaper and faster than selling a physical real estate asset. Moreover, it enables you to realise part of your investment whilst maintaining exposure for the residual amount. In simple words: You can sell 1% of your shares or buy 1% more shares, whilst you can’t easily sell 1% of a building. Simplicity: Owning a share is simple and gives you the right to a dividend. Owning a building however requires management, maintenance and marketing ... to then collect a rent.