REITs vs. Rental Flats: Which Property Investment Suits You Best?

• Rental flats offer tangible ownership and control but demand significant time, effort, and management due to tenant issues, vacancies, and repairs.
• REITs provide investment in large commercial properties without direct ownership, offering liquidity, diversification, and professional management.
• REITs spread income risk across many properties and tenants, providing more stable payouts compared to the single-tenant dependency of a rental flat.
• Rental flats aim for long-term appreciation with potential for high returns but also stagnation; REITs focus on steady income with less dramatic price jumps.
• Costs for rental flats (maintenance, taxes, broker fees) are often underestimated, while REIT costs are bundled and transparent.

Why It Matters: Choose REITs for flexibility and passive income, or rental flats for direct control and potential appreciation.